Representatives Steven Horsford (D-Nev.) and Max Miller (R-Ohio) have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields (PARITY) Act, which seeks to modernize the US approach to crypto taxation. This development comes as Congress prepares to address tax reforms in the coming months, potentially impacting cryptocurrency owners who must report their digital asset holdings and transactions.
The revised PARITY Act, initially released in December and updated on March 26, introduces changes to 'de minimis' gains, which exempt small transactions from tax reporting. The updated version removes the $200 threshold for 'regulated payment stablecoins' and instead proposes that no gain or loss be recognized unless the taxpayer's basis is less than 99% of the redemption value. Additionally, the bill applies wash sale rules to digital asset transactions and differentiates between 'passive staking' and trading activities. While the bill's future is uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.