A bipartisan group of U.S. lawmakers has introduced a draft proposal aimed at easing the tax burden on everyday digital asset use.
Max Miller and Steven Horsford have released a discussion draft of the Digital Asset PARITY Act, which would exempt small stablecoin transactions from capital gains taxes.
The measure is not yet law, but it signals growing bipartisan interest in tailoring U.S. tax rules to better accommodate regulated digital payment instruments.
Targeted Relief for Dollar-Pegged Stablecoins
At the core of the proposal is a $200 capital gains exemption for transactions made with regulated, U.S. dollar–pegged stablecoins. The goal is to remove the compliance friction that arises when consumers are required to track gains and losses on small, routine purchases such as food, transportation, or online services.
The exemption is deliberately narrow. It would apply only to qualifying stablecoins and would not extend to volatile cryptocurrencies like Bitcoin or Ethereum. Lawmakers frame the provision as a practical step toward enabling stablecoins to function as payment tools rather than speculative assets.
Compromise Approach to Staking and Mining Taxes
The draft also addresses one of the most contested areas of crypto taxation: staking and mining rewards. Under the proposal, taxpayers would be given the option to defer taxation for up to five years after rewards are received.
At the end of that deferral period, the rewards would be taxed as ordinary income, based on their fair market value at the time of recognition. This structure aims to balance the government’s interest in eventual taxation with industry concerns about taxing unrealized or illiquid rewards.
Aligning Crypto Taxes With Traditional Markets
Beyond transaction-level relief, the bill seeks to bring digital assets closer to the existing tax treatment of traditional securities. It would extend wash-sale rules to digital assets, preventing traders from claiming artificial losses, and allow eligible participants to use mark-to-market accounting.
Supporters argue that these changes would reduce ambiguity and create a more consistent framework for both retail traders and professional market participants.
When the Changes Would Take Effect
If enacted, the stablecoin exemption and related provisions would apply to taxable years beginning after December 31, 2025. That timeline gives regulators and market participants time to adjust systems and compliance processes.
To qualify for the exemption, stablecoins would need to meet strict criteria, including issuance by a permitted entity under the GENIUS Act and maintaining price stability within a narrowly defined range.
Broader Context and State-Level Momentum
The federal discussion draft follows similar efforts at the state level. In Ohio, the state House has already passed legislation that includes a comparable $200 exemption for capital gains on crypto transactions.
Together, these initiatives reflect a broader push by lawmakers to provide clearer tax rules for digital assets while encouraging innovation in regulated payment technologies. Whether the Digital Asset PARITY Act advances beyond the draft stage remains to be seen, but its bipartisan backing suggests the debate around crypto tax reform is entering a more pragmatic phase.
