Crypto Market Update: House Democrats Push Back on GOP Crypto Tax Bill

Bitcoin (BTC) was priced at US$61,283.35, trading 2.4 percent lower over the past 24 hours.

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Altcoin price update

• XRP (XRP) was priced at US$1.11, trading 4.4 percent lower in 24 hours.

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Today's crypto news to know

Bipartisan impasse deepens over Crypto legislation

A House Ways & Means Committee hearing on six Republican-backed crypto tax bills exposed a sharp partisan divide on Tuesday, threatening to stall the legislation ahead of November’s midterm elections.

With Democrats favored to potentially retake the House, Republicans are racing to pass crypto-friendly bills while their party still controls Congress and the White House, while Democrats argue the process needs to be slowed down to answer outstanding regulatory questions.

A primary point of friction centers on the tax treatment of staking and mining rewards. One GOP bill proposes exempting these rewards from reportable income upon receipt, a move Democrats warn could unfairly advantage crypto over traditional corporate stocks and bonds.

Meanwhile, crypto executives are pressuring lawmakers to broaden the bills, pushing for larger de minimis exemptions.

Currently, the legislation includes a US$10 exemption for network gas fees and eliminates reporting requirements on stablecoins by treating them as fiat equivalents for tax purposes.

UK regulator proposes 10 percent crypto limit for mutual funds

The United Kingdom’s Financial Conduct Authority (FCA) has proposed a new framework that would allow retail investment funds to hold up to 10 percent of their portfolios in cryptocurrencies.

The proposal specifically targets British open-ended investment funds, which pool retail investor capital into actively managed portfolios. According to the FCA, capping digital asset exposure at the 10 percent threshold will help protect retail investors from severe market shocks associated with crypto volatility.

Supporters view the move as a major milestone toward the mainstream acceptance of digital asset investment vehicles.

The initiative follows a growing global trend of institutional adoption spurred by the US regulatory approval of spot Bitcoin ETFs in January 2024.

Japan’s mega-banks to launch joint stablecoins by March 2027

Japan’s three largest financial institutions announced plans on Wednesday (June 10) to jointly issue stablecoins during the current fiscal year ending in March 2027.

According to a Reuters report, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group said they establish a collaborative council to finalize operational frameworks and prepare for the upcoming rollouts.

The joint initiative is receiving direct support from Japan’s Financial Services Agency, which is backing the experimental phase to modernize the country's payment architecture using blockchain technology.

Japan’s domestic stablecoin market has already seen early traction, with startup JPYC launching a yen-pegged token last October.