A bipartisan group of US lawmakers has introduced the Digital Asset PARITY Act to modernise federal tax treatment of cryptocurrencies and digital assets.
The bill was unveiled on December 20 and is sponsored by Representatives Max Miller and Steven Horsford, signalling rare cross-party alignment on crypto regulation.
Lawmakers said the proposal aims to update outdated tax rules that no longer reflect how digital assets are used by investors, businesses, and consumers.
A central feature of the legislation is the application of traditional “wash sale” and “constructive sale” rules to cryptocurrencies.
Under current US tax law, crypto assets are treated as property, allowing traders to sell at a loss and immediately repurchase the same asset.
The proposed change would align crypto with equity markets, requiring investors to wait 30 days before rebuying an asset to claim a loss.
US authorities have previously estimated that closing this loophole could generate billions of dollars in additional federal tax revenue.
Analysts say the rule could significantly alter portfolio management strategies during periods of high market volatility.
This bipartisan legislation brings clarity, parity, fairness, and common sense to the taxation of digital assets. It protects consumers making everyday purchases, ensures the rules are clear for innovators and investors, and strengthens compliance so everyone plays by the same rules.
Miller said.
To offset stricter trading rules, the bill proposes tax relief measures aimed at supporting miners, validators, and long-term network participants.
The legislation introduces an elective framework allowing taxes on staking rewards to be deferred for up to five years or until assets are sold.
This provision addresses concerns over “phantom income,” where rewards are taxed before holders can convert them into cash.
By shifting the taxable event to the point of sale, the bill seeks to reduce liquidity pressure on US-based mining and staking operations.
For everyday users, the bill introduces a “de minimis” exemption designed to encourage practical crypto payments.
Capital gains taxes would no longer apply to transactions under $200 involving compliant stablecoins used for routine purchases.
Supporters argue this would remove a major barrier preventing digital assets from functioning as a true medium of exchange.
Today, even the smallest crypto transaction can trigger tax calculation, while other areas of the law lack clarity and invite abuse. Our discussion draft of the Digital Asset PARITY Act takes a targeted approach that provides an even playing field for consumers and businesses alike to benefit from this new form of payment.
Horsford said.
The proposal also tightens rules around charitable donations involving digital assets to reduce the risk of inflated valuations.
Lawmakers said the changes are intended to support genuine philanthropy while preventing the tax system from being exploited.