Representatives Max Miller and Steven Horsford on Thursday circulated a discussion draft called the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields Act (Digital Asset PARITY Act) that would revise the Internal Revenue Code to clarify how digital assets are taxed.
Key provisions in the draft include special treatment for dollar‑pegged stablecoins: gains would not be recognized so long as an investor’s cost basis in a regulated dollar stablecoin does not change by more than 1% of $1 (effectively $0.01). The proposal also specifies that transaction fees paid to acquire or transfer regulated dollar‑pegged stablecoins would be excluded from an investor’s cost basis.
The bill would create a de minimis tax exemption for stablecoin transactions under $200, meaning such transfers would not generate tax or reporting obligations; the draft does not yet set an overall annual exemption cap. Separately, income from activities like lending, staking or passive validator services would be reportable as gross income each year and measured at fair market value.
The PARITY Act is presented as a discussion draft intended to prompt debate among lawmakers, industry participants and stakeholders; it has not been formally introduced in Congress.
Reaction has been mixed. Advocacy groups such as the Digital Chamber, represented by CEO Cody Carbone, welcomed clearer tax rules as a potential incentive for moving digital‑asset activity onshore. By contrast, some Bitcoin proponents criticized the draft for limiting the de minimis exemption to stablecoins and not extending it to Bitcoin—paralleling concerns raised about other pending legislation. Pierre Rochard of The Bitcoin Bond Company described the approach as misguided, arguing Bitcoin should be eligible for a de minimis exemption and characterizing stablecoins as neither decentralized nor permissionless.
This summary follows Cointelegraph’s editorial standards; readers are encouraged to review the draft and verify details independently.