Bipartisan members of the U.S. House draft cryptocurrency tax bill involving tax exemption for stablecoins and deferral of staking mining income tax

ChainCatcher message, according to The Block, Congressman Max Miller (Republican from Ohio) and Steven Horsford (Democrat from Nevada) are drafting a cryptocurrency tax bill called the Digital Asset PARITY Act.

The bill will provide tax incentives for certain stablecoin transactions and defer taxation on rewards from verified blockchain exchanges. The bill will exempt capital gains tax on stablecoin transactions below $200. As a compromise between the current IRS guidance and industry demands, taxpayers can choose to defer taxes on staking and mining income for five years, after which it will be taxed as ordinary income at fair market value. The bill will extend wash sale rules (preventing investors from selling at a loss and immediately repurchasing to claim tax credits) to digital assets and allow traders to use fair market value accounting.