Bipartisan Bill Seeks to Streamline Crypto Taxation and Close Loopholes

The US government has taken steps towards regulating the digital asset market with the proposed Digital Asset PARITY Act. This bipartisan bill, introduced by Rep. Max Miller (R-OH) and Rep. Steven Horsford (D-NV), aims to address tax-related issues in the crypto industry.

According to the bill, stablecoin transactions generating less than $200 in gains or losses would not trigger capital gains tax reporting. Only regulated payment stablecoins qualify for this exemption, which means they must be issued by a GENIUS Act permitted issuer and meet specific regulatory criteria.

The bill also aims to close the crypto wash-sale loophole, which has allowed traders to sell at a loss for tax deductions and immediately repurchase the same asset. This provision could generate significant new tax revenue for the IRS.