Crypto Market Update: House Democrats Push Back on GOP Crypto Tax Bill
June 10, 2026 – As of 9:00 p.m. UTC
A partisan standoff is intensifying in the U.S. House of Representatives over a GOP-backed cryptocurrency tax bill, raising concerns about its potential impact on the digital asset sector and the broader financial markets. While Republicans are rushing to advance crypto-friendly legislation before the November midterm elections, House Democrats are pushing back, emphasizing the need to address unresolved regulatory questions.
Crypto Market Snapshot
- Bitcoin (BTC): Trading slightly higher, priced at approximately US$61,809.34, up 0.1% in the past 24 hours.
- Ether (ETH): Experienced a decline, currently trading at US$1,629.59, down 1.2%.
- XRP (XRP): Fell 2.9% to US$1.11.
- Solana (SOL): Dropped 2.3% to US$63.72. —
House Impasse Over Cryptocurrency Tax Legislation
On June 9, the House Ways & Means Committee convened a hearing on six Republican-sponsored crypto tax bills, exposing a deep partisan divide that could delay legislation critical to the industry’s regulatory clarity.
Republicans, while controls remain in their favor in Congress and the White House, are pushing to pass bills that would provide a more favorable tax environment for cryptocurrencies. Central to this is a proposal that would exempt staking and mining rewards from being counted as reportable income at the time of receipt — a significant shift from current tax rules.
Democrats, however, warn this exemption could create an uneven playing field by advantaging crypto assets over traditional investments like stocks and bonds. They advocate for a more cautious approach, citing unanswered questions about regulation and potential consequences.
Meanwhile, pressure is mounting from crypto industry executives who urge lawmakers to broaden the proposed bills, including calls to raise the de minimis exemption beyond the current US$10 threshold for network gas fees. The legislation also seeks to simplify tax reporting by classifying stablecoins as equivalent to fiat currency, removing certain reporting requirements.
International Developments
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United Kingdom’s Cryptocurrency Investment Limits: The UK’s Financial Conduct Authority (FCA) has introduced a proposal that would allow retail investment funds to allocate up to 10% of their portfolios to cryptocurrencies. This rule targets open-ended investment funds pooling retail investor capital. The FCA believes capping exposure at this level will help shield average investors from the high volatility seen in crypto markets, marking a measured step toward greater mainstream adoption.
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Japan’s Major Banks to Launch Stablecoins: Japan’s leading financial institutions—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group—have announced plans to jointly issue stablecoins by March 2027. Supported by the Financial Services Agency, this collaboration aims to modernize payment infrastructure by leveraging blockchain technology. Japan’s startup scene has already seen early moves, with JPYC releasing a yen-pegged stablecoin last October.
Industry Funding and Partnerships
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Morpho Secures US$175 Million in Funding: The blockchain lending protocol Morpho raised US$175 million at a valuation of US$2 billion. The funding round was co-led by Paradigm, a16z Crypto, and Ribbit Capital, with contributions from Apollo Funds and VanEck. a16z’s general partner Guy Wuollet praised Morpho’s push toward efficient and accessible credit markets facilitated by blockchain.
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Ethena Partners with Centrifuge for Real-World Asset Tokenization: Ethena, known for the USDe stablecoin, has teamed up with tokenization platform Centrifuge to purchase tokenized real-world assets. Their initial investment will be in the Janus Henderson Anemoy AAA CLO ETF (JAAA), a tokenized ETF representing AAA-rated collateralized loan obligations. This move diversifies USDe’s holdings beyond staked ETH and similar crypto assets towards institutional-grade debt instruments.
Looking Ahead
The ongoing legislative negotiations in the U.S. reflect broader global efforts to integrate cryptocurrency within regulatory frameworks that balance innovation with investor protection. The outcome of the House Ways & Means Committee’s deliberations may significantly shape the trajectory of crypto taxation, affecting both investor behavior and industry growth.
Investors and market watchers are encouraged to monitor these developments closely as policymakers navigate the complexities of digital asset regulation.
For ongoing updates on cryptocurrency markets and policy developments, follow @INN_Technology.
About the Authors:
Meagen Seatter is an Investment Market Content Specialist at Investing News Network with expertise in life sciences, cannabis, tech, and psychedelics markets. Based in Vancouver, she combines marketing and psychology backgrounds with a passion for financial writing.
Giann Liguid is a writer with a diverse background covering security, food, and business industries, along with public sector expertise specializing in local government and administrative dynamics.
Disclosure: Neither author holds direct investment interests in any companies mentioned in this article.