U.S. Representatives Max Miller and Steven Horsford released a draft bill to overhaul digital asset taxation. The “Digital Asset PARITY Act” clarifies tax rules, exempting certain stablecoin transactions from gains and establishing a de minimis tax exemption for stablecoin transactions under $200. It also dictates that income from staking and lending is treated as gross income. The draft seeks to open debate, though some Bitcoin advocates criticize its focus on stablecoins over Bitcoin.
U.S. Representatives Max Miller and Steven Horsford published a discussion draft bill titled the “Digital Asset PARITY Act.” The legislation aims to overhaul the Internal Revenue Code of 1986 by clarifying the tax treatment of digital assets.
The draft states that stablecoins are not subject to gains if their cost basis does not fluctuate by more than $0.01. Transaction costs for acquiring or moving regulated dollar-pegged stablecoins cannot be counted toward an investor’s cost basis.
The bill introduces a de minimis tax exemption for stablecoin transactions below $200. Transactions below that threshold would not trigger tax or reporting requirements, though a total annual exemption cap is undetermined.
Income from lending, staking, or passive validator services is treated as part of the recipient’s gross income annually. This income would be calculated using “fair market” value, according to the draft.
The Digital Asset PARITY Act has not yet been introduced to Congress. It was published as a discussion draft to open debate between lawmakers, stakeholders, and the crypto industry.
Cody Carbone, CEO of advocacy organization Digital Chamber, said, “We need digital asset tax clarity or activity will never fully onshore.” Some Bitcoiners noted the bill includes a de minimis exemption only for stablecoins, not Bitcoin.
Pierre Rochard, CEO of The Bitcoin Bond Company, criticized the draft’s direction. “It’s Bitcoin that should have a de minimis tax exemption. Stablecoins are not decentralized, and they are not permissionless,” he stated.
