US Lawmakers Introduce PARITY Act for Crypto Tax Relief

A new bill, known as the Digital Asset Protection and Regulation bill, aims to provide clarity on crypto taxation in the US. This comes after lawmakers released a discussion draft of the bill back in March.

The PARITY Act, introduced by a bipartisan group of lawmakers including Republican Representative Max Miller, does not establish an immediate exemption for small crypto transactions but rather directs the Treasury Department to study such an exemption and provide interim guidance within 180 days.

The review is expected to analyze compliance burdens for taxpayers reporting crypto transactions under $200, as well as potential IRS reporting changes and abuse risk if an exemption is granted. The bill also aims to maintain stablecoin tax treatment, a safe harbor for brokered trades, and proposes wash sale rules.