A US House tax package scheduled for committee consideration on September 16 would change how qualifying dollar stablecoins and small digital-asset transaction fees are handled under the Internal Revenue Code.
The 114-page Digital Asset Tax Certainty Act, identified by the House Ways and Means Committee as H.R. 10357, remains a proposal. It has not been enacted, and its provisions could change during the legislative process. For payment companies, however, the draft is notable because it addresses two recurring sources of tax and reporting friction: small amounts of crypto used to pay transaction costs and dollar stablecoins transferred close to their redemption value.
Near-par stablecoin transfers get a specific framework
The bill would create special rules for a “qualified U.S. dollar stablecoin.” Its definition is tied to payment stablecoins issued by permitted issuers under the GENIUS Act, including qualifying foreign issuers registered with the Office of the Comptroller of the Currency. The Treasury secretary would be directed, where feasible, to publish a list of qualifying tokens.
For covered acquisitions, the proposal generally sets the stablecoin’s tax basis at its redemption value when the consideration paid is at least 99.5% of that value. On a later sale or exchange, gain or loss generally would be calculated as though the token were transferred at redemption value when the consideration received is no more than 100.5% of redemption value.
The rules include additional conditions, related-party restrictions and exclusions. They would not apply in the same way to stablecoin traders, brokers or dealers, certain similar businesses, taxpayers above a 5,000-transaction threshold, or taxpayers and qualified business units whose functional currency is not the US dollar. Transactions involving ordinary business payments for goods or services are excluded when counting toward that 5,000-transaction threshold.
If enacted as drafted, the stablecoin section would apply to taxable years beginning after December 31, 2026. The bill would also narrow broker reporting rules so qualifying dollar stablecoins acquired at no less than 99.5% of redemption value are excluded from the definition of a specified digital asset for that purpose.
A narrow exception for transaction fees
A separate provision would prevent recognition of gain or loss when a digital asset is disposed of to pay a qualifying network fee of no more than $10. It would extend similar treatment to brokerage, trading, liquidity or comparable fees of up to $10 when the fee is paid with the same type of digital asset being acquired or disposed of in the underlying transfer.
This is not a general exemption for purchases made with crypto. It is limited to specified transaction costs, and the proposal excludes digital-asset traders, brokers, dealers, transaction-validation facilitators and people who completed more than 5,000 digital-asset transfers in the preceding tax year, subject to a possible administrative-convenience exception set by Treasury.
The bill would require brokers to provide aggregate information Treasury considers necessary for fee dispositions covered by the exception, rather than treating each covered disposition under the ordinary reporting rule. The fee exception would apply to asset dispositions after December 31, 2027, while the related broker-reporting changes would apply to returns and statements required after that date.
Operational implications for payment providers
For stablecoin payment and wallet platforms, the proposal’s practical value lies less in eliminating all tax consequences than in defining when a qualifying dollar token can be treated at its stated redemption value. Eligibility would depend on the issuer, the token’s price relative to redemption value, the customer’s activity and future Treasury guidance.
That means providers would still need controls capable of identifying qualifying stablecoins, tracking whether the price tests are met and distinguishing business payments from other transfers. Firms handling network fees would also need to separate covered fees from ordinary crypto spending and monitor transaction-count exclusions.
The package contains broader provisions covering digital-asset lending, simplified accounting, wash sales, constructive sales, voluntary disclosure and the source and character of mining and staking income. It does not include the elective reward-tax deferral sought in separate mining and staking legislation, according to Cointelegraph’s review and a comparison with the committee bill text. The draft instead classifies income from digital-asset validation activities as ordinary income and supplies sourcing rules.
The immediate milestone is the scheduled full committee markup at 10 a.m. Eastern time on September 16. Until Congress approves legislation and it becomes law, payment companies should treat the package as a policy proposal rather than a change to current tax obligations.