Less Tax Paperwork for Digital Asset Owners Act
Sponsored By: Representative Yakym, Rudy [R-IN-2]
Introduced
Summary
Simplifies tax rules for common digital-asset activity. This bill would create a narrow exclusion for trivial network fees, an opt-in accounting method for widely traded tokens, and specific basis and valuation rules for U.S. dollar stablecoins.
Show full summary
- Individuals and households: Fewer small taxable events from paying network fees would cut recordkeeping burdens for everyday crypto users because trivial fee payments up to $10 per transaction could be excluded from gain or loss recognition.
- Traders and investors: A taxpayer-level, opt-in simplified accounting election would let holders of designated widely traded assets use a formula to compute gains and losses and treat them as short-term capital gains. Revoking the election would trigger a 5-year waiting period.
- Brokers, exchanges, and businesses handling stablecoins: New broker reporting for “specified digital assets” would align reporting with stablecoin valuation rules that use redemption value and tight tolerances around 99.5% to 100.5%. The Treasury would get authority to issue anti-abuse regulations and definitions to prevent gaming of the rules.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 2 benefits, 0 costs, 2 mixed.
New rules defining digital assets
This bill would add many tax definitions for digital assets. A "widely traded" asset would generally need market value over $500,000,000 and not more than 10% owned by you and related persons. The $500,000,000 number would rise with inflation after 2027 and be rounded to the nearest $100,000. The Secretary could publish a list of qualified U.S. dollar stablecoins and could exclude assets that lack reliable price discovery or are at risk of manipulation.
Ignore tiny crypto network fees
This bill would let you exclude small disposals used only to pay blockchain or network validation fees from gain or loss. The exclusion would apply when the aggregate validation fee for a given transaction is $10 or less. The rule would not apply to traders, brokers, dealers, batching/validation businesses, similar businesses the Secretary names, or people with more than 5,000 digital-asset transactions in the prior year. These changes would apply to dispositions after December 31, 2027.
Stablecoin tax basis tied to issuer
This bill would set the acquisition basis and most valuation for a qualified U.S. dollar stablecoin equal to the issuer's stated redemption value. The rule would apply when the stablecoin generally trades very close to that redemption value (about 99.5% to 100.5%). The rule would not apply to traders, brokers, dealers, people with over 5,000 applicable transactions in the prior year, or taxpayers with a non-dollar functional currency. These rules would apply for taxable years beginning after December 31, 2026.
New broker reporting for crypto
This bill would change what brokers must report to the IRS about digital-asset customers. Brokers would generally not need to file routine reports when a disposition qualifies for the $10 network-fee exclusion, but they would still file aggregate information the Secretary needs to verify basis. For some widely traded assets with a special election, brokers would report totals for sales, net gain or loss, and holdings' value. These reporting changes would apply to returns and statements filed 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.
View on Congress.gov