At the CoinDesk Consensus Miami conference on Tuesday, Congressman Steven Horsford presented his bipartisan PARITY Act as a foundational step forward amidst stalled Senate negotiations concerning market structures. ‘PARITY aims to establish a stable baseline, not to be the ultimate solution,’ he asserted, emphasizing that existing issues must be resolved within the tax code’s authority to ensure protections for consumers, small enterprises, and asset owners in distinguishing between income and capital gains.
In December, Horsford, a Democrat from Nevada, co-authored the PARITY Act discussion draft with Republican Representative Max Miller of Ohio. He updated the draft on March 26. During his dialogue with moderator Yesha Yadav, Horsford expressed a preference for a focused approach rather than comprehensive alternatives like Sen. Cynthia Lummis’s proposal. ‘A comprehensive bill risks associating genuinely beneficial provisions with overly broad definitions that lead to new complications,’ he warned.
Key elements of the PARITY Act include a stablecoin-payments cost-basis test, a five-year tax-deferral option for staking and mining rewards, and an extension of wash-sale rules to digital assets. Although retirement account access is currently not included in the drafts, Horsford expressed his desire to incorporate it, highlighting its potential to help close the wealth gap by enabling retirement planning through digital assets. He noted a bipartisan interest in advancing this aspect but cautioned against hasty legislation that could lead to unintended consequences.
Regarding broader policy developments, Horsford indicated that Senate negotiations on the CLARITY Act between Senators Thom Tillis and Angela Alsobrooks are currently paused. When questioned about the potential for bipartisan crypto legislation to pass before the upcoming November midterms, he refrained from setting a specific timeline. ‘It’s not just about timing; it’s crucial to get this right,’ Horsford explained. ‘Rushing through Congress can lead to bills with unforeseen issues that may prove difficult to rectify later.’