Senate May Release Crypto Tax Bill by Fall 2026, Daines Says

Sen. Steve Daines, a member of the Senate Finance Committee, said the Senate could release cryptocurrency tax legislation by fall 2026 and that a draft framework is already in place and closely tracks the House proposal. He told colleagues a committee markup could take place later this year.

The framework is intended to address how virtual currencies are taxed and would move to a formal markup before becoming a bill that can reach the Senate floor. Any measure would still need committee approval and passage in both chambers to become law.

Senate work on tax rules is advancing while lawmakers also consider the CLARITY Act, a separate bill focused on market structure. Lawmakers have made tax policy the next major element of congressional crypto work after market-structure debate.

Key issues under discussion include the tax treatment of staking rewards, income from mining, and how to handle small transactions. Aligning the Senate draft with the House text is intended to reduce the risk of conflicting provisions between the two chambers.

Industry participants and tax advisers have cited gaps in current Internal Revenue Service guidance and piecemeal IRS rulings as the reason for seeking clearer statutory rules. Proponents of the framework say clearer rules would make reporting easier for traders, miners, developers and service providers and reduce disputes over how common crypto activities are taxed.

“We’ve gotten a framework put together,” Daines told colleagues, describing the Senate approach as “more similar than not” to the House proposal. He declined to set a firm date for a markup or floor vote and emphasized the document remains a framework rather than a finished bill.

The timing of any formal action will depend on the Finance Committee schedule and the broader congressional calendar. If both chambers keep their texts closely aligned, tax rules could move alongside market-structure legislation during this Congress; if not, negotiators would likely need additional time to reconcile differences.