Last Tuesday’s House Ways and Means Committee hearing on digital asset tax bills was pretty straightforward. The members of the committee asked largely substantive questions, apparently aimed at better understanding both how crypto-taxes can work, as well as what loopholes exist in the current tax policy. There was no back-to-back sniping, no real pot shots at President Donald Trump and his family, and no major arguments. At most, we had a few lawmakers question whether crypto is really a pressing issue amid the current economic conditions.
In agency news, the CFTC released a proposal to better regulate prediction markets, giving the general public some time to weigh in, even as the various lawsuits continue.
Why it matters
Crypto taxes are the next big issue after the market structure bill happens (if it happens at all). And while the hearing wasn’t exactly spicy, it did suggest that there’s a lot of work to be done before crypto tax legislation can proceed through a markup and to the House floor.
The CFTC’s proposal to more closely regulate prediction markets is a first step in this process, and the public comments will be revealing.
To break it down
Tuesday’s Ways and Means Committee hearing saw lawmakers ask questions about the various discussion drafts of bills presented to the hearing that address the various aspects of the crypto-tax debate. It was a remarkably conciliatory hearing, unlike some of the other hearings the crypto industry has seen.
