Late last month, Congressmen Steven Horsford (D-Nev.) and Max Miller (R-Ohio) reintroduced their Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields (PARITY) Act. The bill aims to modernize U.S. cryptocurrency regulations and taxation methods.
In the upcoming months, Congress plans to tackle tax reforms broadly, potentially incorporating crypto within this scope. This development is crucial for any U.S. resident holding digital assets, as they will need to disclose their cryptocurrency holdings and transactions.
Initially released in December last year for discussion, the PARITY Act was subsequently revised on March 26 for additional review.
A notable update involves the handling of “de minimis” gains. Typically, de minimis exemptions permit certain transactions to bypass tax reporting requirements. This means individuals wouldn’t have to declare these transactions or face associated tax implications.
The crypto industry has advocated for such exemptions on smaller transactions, which could simplify routine activities like purchasing coffee without necessitating the reporting of capital gains or losses from cryptocurrency use. The December 2025 draft of the PARITY Act introduced de minimis exemptions specifically for “regulated payment stablecoins,” setting a $200 threshold.
While this section didn’t extend these exemptions to assets like Bitcoin, it emphasized stablecoins due to implications from the GENIUS Act.
The March 2026 version did not explicitly mention a de minimis exemption but seemed to address related concerns:
“In cases involving the sale of a regulated payment stablecoin, no gain or loss will be recognized unless the taxpayer’s basis in such stablecoin is less than 99 percent of its redemption value,” stated the bill. It eliminated the $200 threshold and established a deemed basis of $1 for exchanges.
The latest draft proposes applying wash sale rules to digital asset transactions—a stance not widely disputed, as seen when Senator Cynthia Lummis (R-Wyo.) included similar provisions in her tax proposal last year.
Additionally, the bill distinguishes between “passive staking” and trading activities.
The future steps for this legislation remain uncertain. Although discussions about a reconciliation tax bill are ongoing, and President Donald Trump has outlined his fiscal year 2027 budget requests, it’s unclear whether these will materialize or include crypto provisions.
However, recent dialogues with industry stakeholders indicate a concerted effort to integrate crypto into any forthcoming tax laws.
Editor’s note: This article was initially part of CoinDesk’s State of Crypto newsletter earlier this month.