Digital Asset Taxation Update

Draft legislation addressing various aspects of digital asset taxation has been introduced by Republicans in the House and was the subject of a June 9, 2026, legislative hearing before the House Committee on Ways & Means.¹ Testimony and discussion at the hearing, as well as recent court cases and enforcement activity related to cryptocurrency, suggest that development and refinement of these legislative proposals could have significant effects on the tax treatment and reporting of digital asset transactions. We note, however, that these assorted proposals do not amount to a comprehensive plan for the taxation of digital assets and seem to go out of their way not to reach a conclusion as to whether digital assets are securities or commodities. We also note that some aspects of these proposals are quite controversial and differ from the bipartisan draft Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act (the “PARITY Act”).²