Tax insight

Joint Committee on Taxation report examines taxation of digital assets

Insight
5 minute read
October 22, 2025

What happened?

The Joint Committee on Taxation (JCT) released a report Examining of Taxation of Digital Assets ahead of an October 1 Senate Finance Committee hearing to discuss the details of the report. Finance Committee Chairman Mike Crapo (R-ID) in opening remarks said that “the U.S. must not fall behind in this rapidly growing market—it should be a leader in digital asset development.” Finance Committee Ranking Member Ron Wyden (D-OR) in his opening statement said that “there’s a severe lack of certainty and clarity on how tax rules apply to crypto.”

Why it matters?

Digital assets—cryptocurrencies, stablecoins, and NFTs—have evolved into a multi-trillion-dollar sector. The 2025 JCT report captures the intersection of evolving technology and outdated tax frameworks. The report calls for harmonization among IRS, Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Financial Crimes Enforcement Network (FinCEN) authorities to enable equitable taxation of digital assets while preserving innovation and administrative feasibility.

What’s next?

There continues to be uncertainty around the taxation of digital assets in the United States. Although IRS guidance treats digital assets as property, many provisions designed for securities, commodities, or currency do not map cleanly to their characteristics. The JCT identifies a need for legislative clarity in several areas—particularly broker reporting, mark-to-market rules, wash sales, and international tax coordination—to promote consistent treatment, reduce compliance uncertainty, and prevent either tax avoidance or overreach.