Here’s what happened in crypto today

Today in crypto, US lawmakers are considering a change the tax treatment of crypto fees, stablecoins and lending while leaving existing reward-tax timing unchanged. Polymarket odds of the CLARITY Act becoming law this year fell to 16% as key Democrats challenged Republicans’ final text ahead of the Senate vote and 18 US state attorneys general urged senators to reject the CLARITY Act ahead of Tuesday’s procedural vote.

US House crypto tax package omits mining, staking reward deferral

The US House Ways and Means Committee will consider a 114-page crypto tax package on Wednesday that leaves out a provision that would have allowed miners and stakers to defer taxation of rewards until the tokens are sold.

The Digital Asset Tax Certainty Act, H.R. 10357, was published alongside the committee’s markup notice on Monday. The package does not include the reward-timing provision contained in Representative Mike Carey’s Tax Clarity for Mining and Staking Act, introduced in June.

The provision would have allowed taxpayers to choose between recognizing newly created tokens as income when received or treating them similarly to self-created property and paying tax when sold.

Without the provision, mining and staking rewards would remain taxable when received or brought under the recipient’s control, potentially before they are sold for cash.

CLARITY Act odds fall to 16% as key Democrats counter GOP’s ‘final’ offer

Odds of the CLARITY Act becoming law this year on Polymarket fell sharply again on Monday after spiking the day before, as key Senate Democrats reportedly said they had not been swayed by Republicans’ “final” crypto bill proposal.  

Polymarket traders initially saw a newly revised Republican proposal with expanded ethics provisions as a positive sign, sending the odds to 35%. However, their confidence was dashed as reservations about the revised text began mounting, with the odds falling back as low as 16% on Monday. 

US Senator Mark Warner, one of the Democrats involved in negotiations, reportedly said the revised ethics provision was not “near enough,” while Democrats involved in negotiations began preparing a counterproposal on Monday. 

Republicans need 60 votes to advance the bill, and failure on Tuesday could stall legislation that would determine how the US Securities and Exchange Commission and Commodity Futures Trading Commission divide oversight of the US crypto market.

CLARITY Act faces fresh opposition ahead of Senate vote

A bipartisan group of 18 state attorneys general is urging senators to reject the CLARITY Act ahead of Tuesday’s procedural vote, arguing that the latest version would weaken states’ ability to police the crypto industry.

The coalition, led by New York Attorney General Letitia James, said provisions in the bill could restrict state enforcement against crypto companies accused of fraud and other misconduct. The opposition comes as Senate Republicans released what they called the final draft, which includes 126 substantive changes Democrats requested.

The revised bill also includes tougher ethics rules after President Donald Trump agreed to about 80% of a bipartisan proposal from Senators Thom Tillis and Ruben Gallego. Officials with significant financial interests in crypto issuers could be required to divest or place those holdings in a blind trust, while state attorneys general would gain a role in enforcing the ethics provisions.

The CLARITY Act would establish a federal market structure for digital assets and divide oversight between the SEC and CFTC. Tuesday’s cloture vote requires 60 votes and would determine whether the legislation advances to Senate debate.