Daily Observation on Cryptocurrency Policy: The U.S. House of Representatives Advances the Digital Asset Tax Clarification Act, Proposing a Two-Year Grace Period to Encourage Voluntary Compliance and Disclosure

Legislative Outlook: Establishing a Two-Year Voluntary Disclosure Window for Digital Assets

With the generational evolution of blockchain tracking technology and the refinement of the reporting rules in the Domestic Tax Code, historical tax issues caused by unclear rules or reporting errors have become increasingly common.

Section 502 of the Digital Asset Tax Certainty Act (H.R. 10357), led by the House Ways and Means Committee, proposes a highly practical "tax amnesty and supplementary reporting" arrangement. The bill mandates that the U.S. Department of the Treasury formally establish a dedicated "Voluntary Disclosure Program for Digital Assets" within 12 months after the bill takes effect. This program aims to provide a legitimate correction pathway for taxpayers who have previously had crypto tax reporting oversights: taxpayers can fully correct past reporting errors within 24 months after the program is established by submitting amended returns, paying all historical taxes owed along with statutory interest, and paying a preset penalty exclusive to the program.

Dual-Track Penalty Ladder: Strictly Distinguishing "Good Faith Mistakes" from "Willful Concealment"

To reflect tax system fairness and accurately guide compliance, this provision establishes a clear two-tier penalty standard:

• Good Faith Compliance Channel (Non-Fraud Statement): If a taxpayer formally declares that their past violations were not due to fraud or willful concealment under penalty of perjury, and promptly completes supplementary reporting within 12 months after the program is established, the first $25,000 of their annual tax owed will incur a 0% punitive penalty, while any amount exceeding $25,000 will only incur a symbolic penalty of 5%;

• Non-Good Faith but Full Disclosure Channel (With Criminal Immunity): For taxpayers who do not make the aforementioned non-intentional declaration, the first $25,000 of tax owed will be subject to a 25% penalty rate, while amounts exceeding that will incur a 40% penalty rate (the penalty rate will further increase for late filings). However, the bill provides crucial legal protection—so long as taxpayers have made complete and truthful asset disclosures based on compliance procedures, they will be exempt from criminal prosecution by the Internal Revenue Service (IRS) and the Department of Justice, effectively alleviating concerns of tax-related parties about hiding information due to fear of criminal charges.

Bipartisan Support: The Ways and Means Committee Passes with High Votes, Moving Toward Full House Legislative Showdown

This tax bill not only aligns with the demand to strengthen Treasury revenue but also meets the long-term hope of the industry to eliminate tax-related uncertainties.

As early as September 16, 2026, the House Ways and Means Committee passed H.R. 10357 with an overwhelming bipartisan consensus of 38 votes in favor and 5 against. This highly consistent voting result reflects a pragmatic shift in the attitude of core congressional financial legislators towards digital asset tax policy: rather than spending hundreds of millions on administrative and judicial enforcement costs to conduct cross-border tracking and litigation one by one, it is better to encourage taxpayers to voluntarily come forward through a clearly defined amnesty channel. Currently, the bill still needs to pass a full House vote, Senate approval, and be formally signed by the President before it can become law.

From "Containment and Punishment" to "Institutional Alignment": The U.S. Crypto Tax System

Based on legislative trends in Washington in late October, the institutional design of Section 502 of the Digital Asset Tax Certainty Act marks a departure from the early "enforcement-style" approach of U.S. crypto regulation. By clearly delineating the punitive boundaries between good faith mistakes and malicious tax evasion at the codified level, and exchanging low penalty rates of 0% to 5% for taxpayer transparency, the U.S. Department of the Treasury is expected to streamline the on-chain transaction deadlocks accumulated over several bull and bear cycles in a short time. For global cryptocurrency investors, the steady advancement of this bill signifies that the era of seamless integration between on-chain finance and traditional tax networks is irreversible, and proactive compliance and record-keeping will become the foundation for every market participant.

Source: https://bbx.com/ Cryptocurrency Concept Stock Information Database, compiled based on yesterday's announcements from global listed companies and SEC/TSE disclosure documents.