H.R. 9178, Cryptocurrency Tax Relief. Quorum's AI analysis reads it as a net cost — and names who bears it.
H.R. 9178 · Net cost
What it does
This bill creates three major tax breaks for cryptocurrency owners: (1) a de minimis exception allowing small network fees paid in crypto to avoid capital gains reporting; (2) a simplified accounting method for 'widely traded' digital assets that treats all gains/losses as short-term capital gains (taxed at ordinary income rates, not long-term rates); and (3) special treatment for U.S. dollar stablecoins that treats them like cash for tax purposes. The bill also reduces broker reporting requirements for these transactions.
The analysis names cryptocurrency exchanges — and 4 more groups — among the beneficiaries.
The cost
The 'simplified accounting' method in Section 3 treats all gains as short-term capital gains, eliminating the preferential long-term capital gains rate (15–20%) and forcing taxation at ordinary income rates (up to 37%). This appears to benefit high-frequency traders who can offset gains through losses, while harming long-term holders.
Transparency scores 35%. The analysis flags 1 rider and a high warning level.
Who is behind it
Filed by Rudy Yakym.