US Lawmakers Introduce Comprehensive Crypto Tax Reform Bill

The US government is taking steps to modernize the country's approach to taxing cryptocurrency. A bipartisan group of lawmakers has proposed the Digital Asset PARITY Act, a comprehensive bill that aims to simplify tax treatment for stablecoin transactions while closing a long-standing crypto wash-sale loophole.

The bill would introduce a de minimis exemption for small stablecoin transactions, exempting those with gains or losses under $200 from capital gains tax reporting. This would benefit only regulated payment stablecoins issued by GENIUS Act permitted issuers, which must be pegged solely to the US dollar and maintain a price within 1% of $1.00 for at least 95% of trading days in the prior 12 months.

The bill also addresses other areas of tax treatment related to cryptocurrency, including charitable contribution rules and staking and mining rewards. The proposed legislation aims to provide clarity and stability for digital asset traders and dealers, while generating significant new tax revenue for the IRS through the closure of the wash-sale loophole.