As the U.S. House of Representatives digs into digital assets policy during what lawmakers have styled “Crypto Week” next week, the committee that focuses on tax policy will discuss the proper way forward for taxing crypto.

The chairman of the House Ways and Means Committee, Representative Jason Smith, announced a July 16 hearing of the oversight subcommittee to look at the “affirmative steps needed to place a tax policy framework on digital assets,” according to a statement on Wednesday.

Crypto taxation is next in line behind overall regulation of the markets and the oversight of stablecoins as a leading policy issue expected to get attention in Congress. The two primary legislative efforts are both expected to see action next week, including a potential House vote to approve the Senate’s recently passed bill to regulate stablecoin issuers.

Taxation on digital assets activity has long been a millstone around the industry’s neck, because until crypto taxes get a reliable, rational U.S. tax regime, investors have to face uncertainty in their accounting approach. The House hearing announcement comes on the heels of Senator Cynthia Lummis’ introduction of a bill last week in the other chamber of Congress that addresses some of the lingering complaints of cryptocurrency users.

Lummis’ legislation would set a threshold of $300 on crypto transactions that would need to factor into a users’ tax calculations, freeing up people’s small, day-to-day transactions from capital-gains headaches — limited to a total of $5,000 a year. And it would also eliminate double taxation on crypto given in staking, mining, airdrops and forks, eliminating the initial tax when the rewards are received and focusing only on taxing gains from the eventual sale.

It’s unclear what the House has in mind just yet, but the Republican-led committee is looking for industry-friendly policy, with the hearing entitled, “Making America the Crypto Capital

of the World: Ensuring Digital Asset Policy Built for the 21st Century.”

Read More: Crypto Tax Proposal That Didn’t Make It to Trump’s Budget Bill Pushed on Its Own

Key points:

• Bitcoin is convincing traders that an upside breakout is around the corner, with all-time highs in sight.

• One target demands $116,000 next week, moving BTC/USD firmly out of its narrow range.

• A quick dip before continuing higher is among the options for BTC price action into the new week.

Bitcoin (BTC) reduced volatility to a minimum into the May 18 weekly close as traders bet on a fresh breakout.

BTC price brews classic breakout signal

Data from Cointelegraph Markets Pro and TradingView showed the area around $103,000 acting as a BTC price magnet throughout the weekend.

Now barely fluctuating up or down, BTC/USD was primed for a liquidity grab, with $105,000 and $103,000 both targets, data from monitoring resource CoinGlass confirmed.

Commenting on the current market structure, traders remained broadly bullish, anticipating a rematch with all-time highs and the return of price discovery.

“Next early week Bitcoin target: $116,000,” popular trader Alan summarized in his latest short-term prediction on X.

An accompanying chart underscored the lack of volatility characterizing BTC/USD over the past week.

“$BTC is brewing within this converging triangle with decreasing volume, which is a common indicator of potential for a Breakout,” Alan added.

Fellow trader Mikybull Crypto described the market structure as an “intraday diamond pattern breakout.”

$BTC INTRADAY DIAMOND PATTERN BREAKOUT pic.twitter.com/gMGMub7nTt

— Mikybull Crypto (@MikybullCrypto) May 18, 2025

“With the recent run up we’ve seen a consistent Coinbase spot premium. This is good and show there’s solid demand,” trader Daan Crypto Trades continued, referring to promising US buyer support fueling Bitcoin’s return to six figures.

Qualms over outstanding resistance

More conservative perspectives were confined to a temporary pullback before the upside resumed.

Related: Bitcoin hitting $220K ‘reasonable’ in 2025, says gold-based forecast

“Slow week and Bitcoin hasn’t been able to break resistance so far, which still makes me think that this scenario might be possibly in play,” trader CrypNuevo suggested.

Daan Crypto Trades added that against stocks, Bitcoin had yet to beat out final resistance.

$BTC Has failed to push higher relative to stocks.

The recent relative weakness has come after the US has made a “Deal” with China.

This does show that BTC has turned into this asset which gets interesting for investors when outflows and uncertainty happens elsewhere.

So while… https://t.co/hShAZxGM21 pic.twitter.com/UEPZNGWjff

— Daan Crypto Trades (@DaanCrypto) May 17, 2025

As Cointelegraph reported, longer-term concerns include a full retrace of the relief bounce, which rescued BTC/USD from multimonth lows near $75,000 in April.

A sweep of levels closer to $90,000 is also on the radar.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.