#uscryptostakingtaxreview The Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (PARITY) Act is a bipartisan discussion draft of proposed U.S. legislation unveiled on December 20, 2025, by Representatives Max Miller (R-OH) and Steven Horsford (D-NV). It aims to update the U.S. tax code for digital assets, providing clarity, reducing compliance burdens for everyday users, aligning crypto taxation with traditional financial assets (like stocks and commodities), and closing loopholes to prevent tax abuse while addressing an estimated $50 billion tax gap from unreported transactions.As of December 23, 2025, it is still a discussion draft—not a formally introduced bill—and is open for stakeholder feedback before potential formal introduction in 2026.Key ProvisionsThe draft proposes targeted reforms:De Minimis Exemption for Stablecoin Transactions:Exempts capital gains taxes on personal transactions under $200 using regulated, dollar-pegged payment stablecoins (e.g., those compliant with frameworks like the GENIUS Act).Treats qualifying stablecoins like cash for small everyday purchases (e.g., groceries or coffee), removing the need to track minor gains/losses.Includes anti-abuse measures to prevent splitting larger transactions.Would apply to tax years beginning after December 31, 2025 (if enacted).Staking and Mining Rewards:Offers an optional five-year tax deferral on rewards from staking or mining.Current IRS rules tax these as ordinary income at fair market value upon receipt (leading to "phantom income" issues), plus capital gains later on sale—often seen as double taxation.Deferral would postpone taxation until sale/exchange or after five years, encouraging proof-of-stake network participation.Alignment with Traditional Finance Rules:Applies wash sale rules to digital assets (disallowing tax-loss harvesting if a substantially identical asset is repurchased within 30 days).Permits mark-to-market accounting elections for professional traders/dealers (annual gains/losses based on year-end fair market value).Treats qualified digital asset lending (returning the identical asset type) as non-taxable, similar to securities lending.Clarifies rules for charitable donations of digital assets and passive staking.Compliance and Anti-Abuse Measures:Strengthens reporting requirements while promoting innovation and U.S. competitiveness in digital finance.Why It MattersThe PARITY Act addresses key pain points in crypto taxation, such as burdensome tracking for small payments and immediate taxation of non-liquid staking rewards. Supporters argue it will encourage retail adoption of stablecoins as payment tools, boost institutional staking/mining, and foster innovation without sacrificing revenue or fairness. If enacted, it could reduce volatility concerns for staking-heavy assets (e.g., ETH, SOL, ADA) and attract more investment.This is not tax or legal advice—rules may change, and provisions could be modified. Consult a professional tax advisor and monitor official sources for updates.