Lawmakers to Examine Bipartisan Crypto Tax Reform Bill on May 14

A closed-door session of US lawmakers will examine the implications of crypto tax reform on May 14, a move that could reshape how individuals and businesses pay taxes on digital assets. The House Ways and Means Committee has scheduled a bipartisan meeting to review the Digital Asset PARITY Act, a bill aimed at addressing several long-standing tax issues affecting the industry.

The PARITY Act proposes significant changes to crypto tax rules, including closing the wash sale loophole and offering relief on staking and mining income. Under current law, validators receive staking rewards that are taxed as ordinary income, even if those tokens are never converted to cash. The bill would allow miners and validators to defer taxes on staking rewards for up to five years or until the point of sale.

The legislation also eliminates capital gains taxes on transactions under $200 when users pay with stablecoins issued by companies compliant with the GENIUS Act. This move aims to remove the friction that currently makes spending crypto on everyday purchases impractical. Rep. Max Miller has stated that he expects the bill to advance before August 2026, aligning with ongoing momentum in crypto legislation.