House Members Introduce Digital Asset Tax Framework
Two members of Congress from opposite parties have put forward a preliminary tax structure for cryptocurrencies that would provide special treatment for certain stablecoin uses and address the timing question for taxing staking income, Bloomberg reported on Saturday.
Max Miller, Republican representative from Ohio, and Steven Horsford, Democratic representative from Nevada, who both sit on the House Ways and Means Committee, announced the Digital Asset PARITY Act. The draft proposal would make transactions involving regulated, dollar-backed stablecoins under $200 exempt from capital gains taxation—a feature crafted to reduce administrative burdens on common transactions. The exemption would not apply to Bitcoin, Ethereum, or other digital currencies.
“Like any emerging technology, cryptocurrencies need guardrails that allow innovation to grow while protecting consumers and the integrity of our tax system,” Representative Horsford said to KOLO. “Today, even the smallest crypto transaction can trigger tax calculation while other areas of the law lack clarity and invite abuse.”
Stablecoins seeking safe harbor status must originate from an issuer approved under the GENIUS Act, be tied only to the US dollar, and have sustained pricing within 1% of $1.00 during at least 95% of trading sessions in the preceding 12 months. Brokers and dealers cannot utilize this exemption.
The draft acknowledges that legislators continue to assess whether implementing an annual aggregate threshold would be appropriate to prevent the provision from concealing investment returns.
