Blockchain Association Urges Congress to Pass Digital Asset Tax Legislation, Outlines 10 Principles

The Blockchain Association is urging Congressional leaders to pass bipartisan digital asset tax legislation, outlining 10 principles for such a bill. This advocacy comes as legislative progress on the issue has stalled, leaving an estimated 67 million Americans who hold digital assets in a state of regulatory uncertainty.

In a letter addressed to top Congressional leaders, including House Speaker Mike Johnson, House Minority Leader Hakeem Jeffries, Senate Majority Leader John Thune, and Minority Leader Chuck Schumer, the association detailed its proposed framework. The principles aim to modernize tax rules that the association argues are outdated and do not reflect current digital economy practices.

Key principles advocated by the Blockchain Association include a de minimis exemption for small transactions, intended to reduce the tax burden for everyday users making minor cryptocurrency purchases. The association also called for tax-free wallet transfers, clarifying that moving digital assets between one’s own wallets should not trigger a taxable event. Furthermore, the group proposed extending wash sale rules to digital assets, a measure generally designed to prevent investors from claiming tax deductions on assets sold at a loss and immediately repurchased. The ability for Americans to hold digital assets within retirement accounts was also highlighted as a crucial component.

These principles are part of a broader effort to bring clarity to digital asset taxation. The Blockchain Association previously released its Digital Asset Tax Principles on February 24, 2026. In the House, the Digital Asset Tax Certainty Act (H.R. 10357) was approved by the House Ways and Means Committee on September 16, 2026, by a 38-5 vote. The Senate introduced its own measure, the ADAPT Act, on September 30, 2026. However, action on both bills stalled after Congress went on recess.

Lindsay Fraser, the Blockchain Association’s Chief Policy Officer, emphasized the need for tax rules that align with the realities of the digital economy. The association is signaling a willingness to accept certain regulatory frameworks in exchange for predictability, though it is not endorsing any specific bill, instead setting terms for what any legislation should encompass.

The lack of updated tax rules presents practical challenges for many Americans. The association notes that everyday crypto use can generate numerous small taxable events that individuals may not be equipped to track. For investors, the absence of clear rules around wash sales could allow for certain loss-harvesting tactics.

While the association’s principles address user-facing issues, they also touch upon the needs of crypto builders. The group highlighted the importance of research and development credits for those developing digital asset technologies. However, current legislative proposals, such as H.R. 10357, reportedly leave out tax relief for miners and stakers, a point of concern for firms in those sectors.

Several uncertainties remain regarding the future of digital asset tax legislation. It is unclear whether House leadership will schedule H.R. 10357 for a full vote, or if the Senate’s ADAPT Act will gain additional co-sponsors. Furthermore, it is uncertain whether any future legislation will include the specific provisions for mining and staking relief that the industry desires.

The Blockchain Association’s recent letter serves as a reminder of the ongoing need for legislative action to provide a clear and modern tax framework for digital assets in the United States.

Why This Matters

The materials describe a narrow update: The Blockchain Association sent a letter to top Congressional leaders advocating for the passage of bipartisan digital asset tax legislation. Whether House leadership will schedule H.R. 10357 for a full vote.

Broader Context

Source materials place the factual news in this context: The Blockchain Association wants Congress to finish a job it has started, and then paused, more than once.