1. $200 Capital Gains Tax Exemption for Stablecoin Purchases
Creates a $200 capital gains tax exemption for purchases made using regulated U.S. dollar stablecoins.
Only applies to qualifying stablecoins (not other cryptocurrencies, brokers, or dealers).
Stablecoin must:
Be issued under the GENIUS Act.
Be pegged solely to the U.S. dollar.
Have traded within 1% of $1.00 on ≥95% of trading days in the prior year.
Effective for tax years starting after December 31, 2025.
An annual cap is being considered to prevent abuse for sheltering investment gains.
2. Tax Deferral on Staking & Mining Rewards
Targets "phantom income" by allowing taxpayers to elect to defer income recognition on staking/mining rewards for up to 5 years.
Compromise approach: Instead of being taxed immediately upon receipt, taxation can be deferred until sale or for a limited period.
3. Application of Traditional Financial Rules to Crypto
Extends existing market regulations to digital assets:
Wash sale rules
Constructive sale rules
Securities-lending-style treatment for certain crypto lending (only for fungible, liquid tokens; excludes NFTs and illiquid assets).
4. Additional Provisions
Mark-to-market accounting allowed for professional traders.
Eases appraisal requirements for donating large-cap digital assets (over $10 billion).
Clarifies that passive, protocol-level staking by investment funds is not considered a trade or business.
5. Bill Sponsors & Status
Draft bill introduced by Rep. Max Miller (R-Ohio) and Rep. Steven Horsford (D-Nev.).
Aims to address small stablecoin payments and taxation of staking rewards.
Summary
The Digital Asset PARITY Act proposes targeted crypto tax reforms: a small capital gains exemption for stablecoin purchases, deferral options for staking/mining taxes, and the extension of traditional financial regulations to digital assets, while easing certain compliance burdens.
