Digital asset tax reform bill advances with broad business implications - RSM

The Digital Asset Tax Certainty Act represents a major legislative step toward integrating digital assets into the existing U.S. federal tax framework. Passed by the House Ways and Means Committee on September 16, the bill would not reclassify digital assets as securities for all legal purposes, but rather would apply numerous tax concepts historically reserved for stocks, commodities, and other financial products to digital asset transactions. This approach aims to modernize the tax code for the digital asset economy while establishing clearer rules of the road for compliance and tax planning.

The legislation addresses several key areas of concern for institutional investors and digital asset holders. Wash-sale treatment, a cornerstone of traditional securities tax law, would now extend to traded digital assets (with the exception of certain qualified stablecoins). Under current law, investors have not faced express statutory restrictions on loss harvesting with digital assets; the bill closes this loophole by aligning the timing of digital asset loss recognition with the treatment applicable to stocks and securities. Additionally, dealers and traders in covered digital assets would gain the option to elect mark-to-market tax accounting, providing a more consistent framework for recognizing gains and losses and allowing qualifying taxpayers to align their tax reporting with traditional financial asset treatment. Traded digital assets would also be factored into determinations of investment company status for corporations and partnerships.

For the broader alternative investment and digital asset industry, passage introduces new statutory guidance in several areas while simultaneously creating fresh reporting and compliance obligations. The bill consolidates a series of tax proposals developed over the course of 2026 and establishes federal rules governing stablecoins, crypto lending, mining, staking operations, and transaction fees. While the legislation promises clarity and reduced compliance burden in the long term, market participants should anticipate near-term planning adjustments as the new rules take effect and Treasury guidance follows.