The US House of Representatives adjourned this week and will not reconvene until after the November midterm elections. The Senate is tentatively scheduled to remain in session until the end of September. A post-election lame-duck session is currently scheduled to begin on 9 November.

Before leaving Washington, the House Ways & Means Committee on 16 September approved the Digital Asset Tax Certainty Act (H.R. 10357) in a 38-15 bipartisan vote. The proposed bill is the first substantive US legislation on the tax treatment of digital assets including cryptocurrencies. A fact sheet on the bill is here.

The long-awaited digital legislation addresses some of the main issues raised at prior congressional hearings. A Ways & Means subpanel in July 2025, a Senate Finance Committee hearing in October 2025 and a full Ways & Means hearing in June 2026 had addressed specific crypto tax bills — including the need for a de minimis rule to exempt certain transactions.

The bill that passed the committee this week includes a de minimis rule for smaller transactions, application of mark-to-market accounting rules to digital asset brokers and dealers, and a provision that allows digital assets to qualify for safe harbors that permit foreign persons to more easily invest in US markets. The proposed legislation also includes measures to streamline rules on charitable contributions of digital assets and applies wash sale rules and constructive sale rules to digital assets.

The congressional Joint Committee on Taxation's description (JCX-47-26) of the bill, released ahead of the Ways & Means hearing, indicated that income from digital asset validation supporting activities is treated as ordinary income. The tax treatment of mining and staking has generated persistent questions, including whether awards are taxed upon receipt or whether new digital assets are akin to self-created property and should be taxed upon disposition.

Also this week, the Senate failed to move a crypto market structure bill. On 15 September, members failed to advance the Digital Asset Market Clarity Act (H.R. 3633), a sweeping bill establishing a market structure for cryptocurrency and other digital assets. Notwithstanding text revisions and counteroffers, the chamber ultimately voted not to proceed with the bill, in a strictly partisan vote.

Senate Majority Leader John Thune (R-SD) this week was quoted as saying Senate Republicans will not consider another budget reconciliation resolution until after the November midterm elections.

The Senate Budget Committee Chairman in early August released a Fiscal Year (FY) 2027 budget resolution with budget reconciliation instructions to several committees, but not to the tax-writing Finance Committee. There has been no movement in the Senate on the measure. The House approved an FY 2027 budget resolution on 22 July.

Ways & Means Committee member Ron Estes (R-KS) on 16 September introduced the US Innovation and Global Competitiveness Act of 2026 (H.R. 10431), which would amend certain international tax provisions, including Base Erosion and Anti-Abuse Tax (BEAT) changes, Net Controlled Foreign Corporation (CFC) Tested Income (NCTI) simplification, and foreign-derived deduction eligible income (FDDEI) expansion. The bill would narrow the BEAT's application and eliminate the 10% reduction (haircut) in foreign tax credits for NCTI, in addition to allowing Net CFC Tested losses of a CFC to be carried forward for up to five years. The bill also calls for increasing the FDDEI deduction from 33.34% to 40%, among other international tax changes. A press release provides some details.

The bill also addresses foreign digital services taxes (DSTs) and other tax regimes viewed as discriminatory against US multinationals by denying the proposed BEAT changes for payments to a foreign related party that resides in jurisdictions that impose those taxes.

On 11 September 2026, the OECD/G20 Inclusive Framework released a package to support the consistent implementation and application of the Global Minimum Tax. The package includes a framework for the full legislative review process, updates to the Global Anti-Base Erosion (GloBE) Information Return (GIR), and new guidance on the application of the GloBE Model Rules.

The Terms of Reference and Methodology for the Full Legislative Review document provides a framework for Inclusive Framework members to undertake detailed peer reviews of implementing jurisdictions' legislation to ensure alignment with the GloBE Model Rules and Commentary.

As noted last week, the updated GIR document incorporates the simplifications included in the Side-by-Side package agreed by the Inclusive Framework in January 2026. These revisions to the GIR are intended to apply only to GIRs filed in respect of fiscal years commencing on or after 31 December 2025.

Finally, new OECD administrative guidance addresses the treatment of Explicitly Conditional Taxes and the use of Local Financial Accounting Standards under a qualified domestic minimum top-up tax. A Global Tax Alert is pending.