Digital Asset PARITY Act Draft: Stablecoin Tax Relief Debated

The US lawmakers Max Miller and Steven Horsford have released a discussion draft of the “Digital Asset PARITY Act,” proposing federal crypto tax reforms through amendments to the Internal Revenue Code. Key changes focus on stablecoins first. Under the Digital Asset PARITY Act, certain gains on dollar-pegged stablecoins may be excluded from recognition when the investor’s cost basis changes by no more than 1% of 0.01 (based on the peg). The draft also prevents transaction costs for acquiring or transferring regulated dollar-pegged stablecoins from being added to investors’ cost basis. It further proposes a de minimis-style exemption for small stablecoin activity: transactions under $200 would not trigger tax or reporting, though the annual exemption cap is not set yet. For trading strategies beyond stablecoins, the Digital Asset PARITY Act draft would require annual gross-income inclusion for “passive” validator-related income (including lending, staking, and validator services), valued at fair market value—potentially creating tax liability even without selling. The draft is not yet introduced in Congress and is seeking stakeholder input. Industry reaction is mixed: Digital Chamber’s Cody Carbone argues the clarity could help “onshore” crypto activity, while critics like Pierre Rochard say the approach is too stablecoin-specific and misses Bitcoin (BTC). For traders, this signals possible rule changes that could affect stablecoin usage, staking income planning, and tax-exposure management in the US.