Crypto Tax Hearing Stays Bipartisan as CFTC Targets Prediction Markets

The House Ways and Means Committee held a hearing on crypto tax rules last week. The session stayed bipartisan and focused on substance, not politics. Lawmakers questioned industry experts about gaps in current tax policy, how digital assets should be treated, and what implementation would look like, several people familiar with the hearing said.

No policy decisions came out of it. The hearing showed that significant work remains before any crypto tax bill can move through committee markups and reach a House floor vote. Some lawmakers questioned whether crypto taxation should be a priority given broader economic challenges, according to a person who attended.

Separately, the CFTC released a proposal outlining how it plans to regulate prediction markets. The agency is asking for public feedback on how it defines gaming activities and which prediction market contracts qualify as federally regulated swap products. The proposal follows a lawsuit the CFTC filed against New Mexico, arguing that sports-related prediction market contracts fall under federal oversight, not state gaming rules.