US Lawmakers Unveil Proposal to Reform Digital Asset Taxation Rules

US lawmakers have proposed a bill to reform how the federal tax code treats digital assets. The Digital Asset PARITY Act aims to introduce clearer rules for crypto taxation and provide certainty for investors.

The proposal, introduced by Max Miller and Steven Horsford, would amend the Internal Revenue Code of 1986 and include specific stablecoin treatment. This includes a test for when investors would not owe gains tax on their holdings.

Under the draft, stablecoins would be excluded from gains recognition if the cost basis does not change by more than 1% or 0.01, depending on the peg amount. The bill also bars transaction costs incurred to acquire or move regulated dollar-pegged stablecoins from counting toward an investor's cost basis.

The proposal also introduces a new de minimis rule that would provide a limited exemption for small stablecoin activity. This means that transactions below $200 would not trigger tax or reporting requirements, although the total annual cap remains undecided.