New Bipartisan Bill Seeks Tax Breaks for Small Stablecoin Payments

A bipartisan House bill proposes exempting stablecoin transactions under $200 from capital gains taxes and allowing a five-year tax deferral on staking and mining rewards, while extending securities tax rules to digital assets.

A bipartisan draft bill in the U.S. House, known as the Digital Asset PARITY Act, aims to overhaul crypto taxation by introducing a safe harbor for small stablecoin transactions and revising the tax treatment of staking and mining rewards. The proposal, led by Max Miller and Steven Horsford, would exempt regulated, dollar-pegged stablecoin transactions under $200 from capital gains taxes, provided the stablecoins meet strict criteria regarding issuance and price stability. The exemption is intended to ease compliance for everyday users and would not apply to other cryptocurrencies or brokers and dealers. Lawmakers are considering an annual cap to prevent abuse. The bill also allows taxpayers to defer taxes on staking and mining rewards for up to five years, after which the rewards would be taxed as income at fair market value. Additional provisions extend securities-related tax rules, such as wash sale and constructive sale rules, to digital assets, permit mark-to-market accounting for eligible traders, and clarify that certain crypto loans are not taxable events. The exemption would take effect for taxable years beginning after December 31, 2025.