Digital Asset Tax Advocacy Hires Firm for Tax Lobbying

Why It Matters

Digital Asset Tax Advocacy registered with Resonant Tax Strategies LLP in August to lobby on taxation and Internal Revenue Code matters. The move signals the group's intent to shape crypto tax policy.

Broader Context

The digital asset market reached $3 trillion in total capitalization in 2025, with up to 30% of American adults owning digital assets. Yet the current tax code applies rules written decades before blockchain technology existed, leaving common digital asset transactions without explicit guidance. The IRS Form 1099-DA requires brokers to report gross proceeds for transactions effected on or after January 1, 2025, and will require basis reporting starting January 1. The crypto wash sale loophole costs the Treasury $24 billion, and because the IRS classifies crypto as property, not a security, investors can sell at a loss and immediately repurchase, a strategy unavailable for stocks.

Between The Lines

Capitol Hill has shifted its crypto focus from market structure to tax policy, with bipartisan momentum building in 2026. The House Ways and Means Committee held its first major legislative push on cryptocurrency tax rules in June. Sen. Cynthia Lummis (R-WY) and Sen. Bill Cassidy (R-LA) joined legislation addressing a de minimis rule for crypto purchases, ending double taxation of miners and stakers, providing parity with other financial assets on wash sales and mark-to-market treatment, and allowing charitable contributions of digital assets at market value.