PARITY Act Explained—House Lawmakers Propose New Crypto Tax Rules

Bipartisan House lawmakers, including Representatives Steven Horsford (D-NV) and Max Miller (R-OH), introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (PARITY) Act, a draft bill intended to modernize U.S. tax rules for digital assets. A key provision offers a de minimis tax exemption for small gains or losses from routine transactions using regulated, dollar-pegged stablecoins, treating them similarly to low-value foreign currency exchanges; this relief excludes trading professionals. Furthermore, the act proposes extending wash-sale rules to actively traded digital assets, addresses mark-to-market accounting to prevent gain deferral via derivatives, and allows certain crypto loans to avoid immediate tax recognition. Crucially, it also introduces clearer rules for staking and mining rewards, permitting taxpayers to defer income recognition for several years.

(Source：CCN)