U.S. House's tax committee advances crypto tax bill in wake of Clarity Act loss

The legislation expands various taxation rules on other financial assets to crypto, seeking parity between the new technology and traditional modes of finance.

Though the effort was largely bipartisan, some linked the industry to one of the industry's biggest benefactors, President Donald Trump, and questioned why the crypto industry should get attention while other taxpayer needs don't.

"This committee remains the only place in Congress that's rushing to provide favors to this industry," said Representative Lloyd Doggett, a Democrat from Texas who is a senior member of the committee, noting the Senate's failure to advance the Digital Asset Market Clarity Act.

"I've not had anyone come up to me and say, 'You know what? This committee really ought to prioritize is new tax breaks and loopholes for the crypto industry,'" Doggett said before the committee vote. "Once again, this committee makes very clear that while it ignores the real needs of ordinary Americans that are suffering from failed Trump policies, it eagerly responds to moneyed interests with the strongest lobbyists and the biggest political action committees."