US Lawmakers Introduce Revised Crypto Tax Bill

U.S. Representatives Max Miller (R-Ohio) and Steven Horsford (D-Nev.) have re-introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (PARITY) Act. The bipartisan legislation seeks to modernize the Internal Revenue Code of 1986 by clarifying the tax treatment of digital assets.

The bill was first released as a discussion draft in December 2025 and was re-released on March 26, 2026, for further review. The legislation aims to update how the U.S. Addresses crypto taxes and reporting requirements for digital asset holdings and transactions.

Stablecoin Tax Exemptions and Cost Basis

A central component of the Digital Asset PARITY Act is the proposed tax treatment for stablecoins. According to the discussion draft, stablecoins would not be subject to gains if the cost basis—the amount paid by the investor—does not fluctuate by more than 1% of $1 or $0.01.

The bill also specifies that transaction costs incurred to move or acquire regulated dollar-pegged stablecoins cannot be included in an investor’s cost basis.

De Minimis Exemptions

The legislation introduces a de minimis tax exemption for specific transactions. Under this provision, stablecoin transactions below a $200 threshold would not trigger tax or reporting requirements. While the December 2025 version of the act focused on regulated payment stablecoins, a total annual exemption cap has not yet been determined.

The de minimis exemption is intended to simplify small transactions, such as purchasing coffee, by removing the need for individuals to report a capital gain or loss on the crypto used for the transaction.

However, the current draft of the bill does not extend these de minimis exemptions to other digital assets, such as Bitcoin.

Treatment of Passive Income

The Digital Asset PARITY Act also addresses income generated through digital asset activities. Income earned from staking, lending, or passive validator services is to be treated as part of the recipient’s gross income each year.

The draft specifies that this income should be calculated based on the fair market value of the assets.

Legislative Status and Context

The Digital Asset PARITY Act has not yet been formally introduced to Congress. It was published as a discussion draft to facilitate debate between lawmakers, stakeholders, and the cryptocurrency industry regarding the overhaul of U.S. Crypto tax policy.

The move comes as Congress prepares to address general tax issues in the coming months, with the potential for cryptocurrency regulations to be integrated into broader tax discussions.