Parity Act would exempt small crypto buys and apply wash sale rules
Bipartisan lawmakers introduced the PARITY Act to provide tax relief and clarity for digital assets, including stablecoin exemptions and staking deferral.Summary
Bipartisan U.S. Representatives Max Miller and Steven Horsford unveiled the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (PARITY) Act, a draft bill designed to modernize the 1986 tax code for digital assets. The proposal seeks to eliminate excessive taxation on everyday crypto transactions and address ambiguities. Key provisions include exempting capital gains tax on low-value, dollar-pegged stablecoin transactions under $200 if issued by a regulated entity, and allowing optional tax deferral for staking and mining rewards for up to five years. The bill also applies longstanding wash sale rules to crypto to prevent tax loss harvesting and introduces mark-to-market accounting for active traders. Furthermore, it targets derivative-based hedging strategies and grants nonrecognition treatment for certain digital asset loans, excluding NFTs and thinly traded tokens.
(Source：CoinDesk)