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119-hr-9178119th CongressWALLET

Less Tax Paperwork for Digital Asset Owners Act

Sponsored By: Representative Yakym, Rudy [R-IN-2]

Introduced

Summary

Simplifies tax paperwork for many digital asset owners by carving out tiny on‑chain fee transactions, offering an optional simplified accounting route for widely traded tokens, and setting clearer stablecoin basis and broker reporting rules.

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  • Owners who pay small validation fees on-chain would not recognize gain or loss when the total validation fees paid for a transaction stay at or below $10. Traders, brokers, high-volume actors and those with more than 5,000 transactions are excluded, and the rule would apply to dispositions after December 31, 2027.
  • Holders of widely traded tokens could elect a simplified annual accounting method that treats gains and losses as short-term. The bill defines "widely traded" with rules including a $500 million market cap test and a 10% ownership cap, and elections generally continue year to year.
  • Stablecoin users and platforms would get clearer basis rules for qualified U.S. dollar stablecoins, with acquisition basis tied to a redemption value subject to 99.5% and 100.5% limits. Brokers get narrower reporting duties for de minimis fee payments and for taxpayers using the simplified accounting election. Effective dates vary by provision, starting in 2026 and 2027.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Stablecoin valuation set to redemption

If enacted, the bill would treat the acquisition value and most exchange values of a qualified U.S. dollar stablecoin as the issuer's redemption value. For most taxpayers, acquisition value would be limited to at least 99.5% of redemption value and sale value to no more than 100.5% of redemption value, unless facts make that unreasonable. Traders, brokers, dealers, very high-volume users (over 5,000 prior-year transactions), and some non-dollar currency cases would be excluded. Related-party transfers would use a 100% threshold. These rules would apply to tax years beginning after December 31, 2026.

New crypto and stablecoin definitions

If enacted, the bill would add clear tax definitions for digital assets and for "qualified U.S. dollar stablecoins." A "widely traded" asset would generally need exchange quotes for the year, market capitalization over $500,000,000 for most of that year, and no more than 10% owned by you or related people. The Treasury Secretary could exclude assets with unreliable prices and would publish a list of qualified U.S. dollar stablecoins. Brokers could treat some qualified stablecoins as outside certain digital-asset reporting when a buyer's basis is at least 99.5% of the stablecoin's redemption value.

Optional simple accounting for crypto

If enacted, taxpayers could elect a simplified, type-based annual accounting method for a designated widely traded digital asset. Under the election, gains and losses for that asset type would be computed on an annual aggregated basis and treated as short-term. The election would start the taxable year after election, generally continue year-to-year, and partnerships and S corporations would elect at the entity level. Brokers would generally not report each individual disposition for elected assets but would report aggregated information. The Treasury would issue rules on elections, revocations, transitions, and abuse; the rule would apply for tax years beginning after December 31, 2027.

Small crypto fee tax exclusion

If enacted, small on-chain network or validation fees paid in a digital asset would not trigger taxable gain or loss when the aggregate validation fee does not exceed $10. Paying a fee in crypto would still be treated as a disposition for value purposes, but recognized gain would be reduced by the excluded amount. The exclusion would not apply to traders, brokers, dealers, batching or validation businesses, or people with more than 5,000 digital-asset transactions in the prior year. Brokers generally would not report each such disposition but must provide aggregated information the Treasury requires. The rule would apply to dispositions after December 31, 2027.

Sponsors & CoSponsors

Sponsor

Yakym, Rudy [R-IN-2]

IN • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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