Key Takeaways
- House lawmakers have introduced the Digital Asset PARITY Act.
- The draft bill proposes amendments to how crypto is treated in the U.S. tax code.
- Proposals include a tax exemption for stablecoin payments and clearer rules for staking and mining.
A bipartisan group of House lawmakers has proposed the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (PARITY) Act—a draft bill that would reshape how digital assets are treated under the U.S. tax code.
The proposal from Representatives Steven Horsford (D-NV) and Max Miller (R-OH) aims to modernize tax rules without creating new loopholes, targeting long-standing ambiguities that have frustrated many crypto users.
Stablecoins and Everyday Payments
A central feature of the PARITY Act is a de minimis exemption for regulated payment stablecoins.
Under the proposal, small gains or losses from routine transactions would generally not be taxed.
The measure is designed to treat stablecoin payments more like foreign currency transactions, mirroring existing tax relief for low-value FX purchases.
“Today, even the smallest crypto transaction can trigger tax calculation,” Rep. Horsford said. “Our discussion draft of the Digital Asset PARITY Act takes a targeted approach that provides an even playing field for consumers and businesses alike to benefit from this new form of payment,” he added.
Only dollar-pegged stablecoins issued by approved entities would qualify for the tax exemption, which would only apply if a stablecoin trades within a narrow price band.
In cases where coins fall outside of that band, gains and losses would be calculated using a deemed $1 cost basis.
The rule is aimed squarely at consumers, not trading professionals. Brokers and dealers would be excluded from any relief.
Broader Crypto Tax Reforms
Beyond stablecoins, the PARITY Act proposes changes across crypto markets.
For instance, wash-sale rules that currently apply to the stock market would be extended to actively traded digital assets.
This would block investors who sell tokens at a loss and quickly buy them back from claiming the loss as a tax deduction.
Additional sections touch on mark-to-market accounting and constructive sales, with the aim of preventing gain deferral through complex derivatives or hedging strategies.
The bill also addresses digital asset lending, allowing certain crypto loans to avoid immediate tax recognition, similar to securities lending.
Finally, clearer rules are proposed for staking and mining rewards that would let taxpayers defer the recognition of income for several years.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
