Senate Finance Committee to Hear Crypto Tax Policy Reforms
Next week, the US Senate Finance Committee will convene a hearing on crypto tax policy, chaired by Senator Mike Crapo. The session will feature key witnesses including Coinbase Tax VP Lawrence Zlatkin, Coin Center Policy Director Jason Somensatto, AICPA Digital Assets Tax Task Force Chair Annette Nellen, and attorney Andrea Kramer.
Lawmakers aim to clarify digital asset taxation, capital gains treatment, transaction tracking, and the tax implications of staking, mining, and stablecoin payments. Senator Cynthia Lummis plans to push for reforms to prevent double taxation of miners and stakers and introduce a de minimis exemption for small transactions. Additionally, Senators led by Scott Bessent urged Treasury to adjust the corporate alternative minimum tax to apply only to realized gains, warning current rules could force US firms to sell tokens. The hearing underscores market calls for clearer crypto tax policy and may shape federal legislation in the 2026 cycle, impacting trading strategies and market competitiveness.
Bullish
The Senate hearing on crypto tax policy is likely bullish for the market. Increased clarity around digital asset taxation, such as de minimis exemptions for small transactions and relief from double taxation on staking and mining, reduces regulatory uncertainty for traders and businesses. Proposed adjustments to the alternative minimum tax, limiting it to realized gains, may prevent forced token sales by US firms. In the short term, the prospect of clearer tax rules could boost trading activity and liquidity. Over the long term, well-defined crypto tax policy supports sustained adoption, innovation, and market stability, making the US market more competitive globally.