What is the PARITY Act and why does it matter for crypto investors?

The PARITY Act is a proposed US bill aimed at clarifying how crypto is taxed. Steven Horsford described it as a “durable floor” for crypto tax rules rather than a full overhaul. For investors, clearer tax treatment could reduce uncertainty and compliance risks.

Why is Horsford pushing incremental crypto tax reform instead of a big bill?

Horsford argues that smaller, targeted reforms are more practical and less risky than sweeping legislation. He said large bills can include overly broad definitions that create unintended consequences. Incremental changes are easier to pass and refine over time.

What key tax changes are included in the PARITY Act?

The bill proposes a cost-basis test for stablecoin payments, tax deferral for staking and mining rewards, and extending wash-sale rules to crypto. These changes aim to align crypto taxation more closely with traditional assets. This could simplify reporting for investors.

How would tax deferral on staking and mining rewards work?

The proposal would allow investors to defer taxes on staking and mining rewards until they sell the assets. This avoids taxing unrealised gains at the time of receipt. It could improve cash flow for crypto holders.

What are wash-sale rules and why apply them to crypto?

Wash-sale rules prevent investors from claiming tax losses if they quickly repurchase the same asset. Applying them to crypto would close a loophole that currently allows tax-loss harvesting. This would bring crypto in line with equities.

Why are CLARITY Act negotiations relevant here?

Talks around the CLARITY Act are currently “on hold,” slowing broader crypto regulation. This makes smaller bills like PARITY more important in the near term. It shows how fragmented US crypto policy remains.

How could this impact everyday crypto users?

If passed, the PARITY Act could make tax rules clearer and more predictable. This would reduce confusion for retail investors and small businesses. It may also encourage more participation in crypto markets.

What are the risks or limitations of the PARITY Act?

The bill does not address all aspects of crypto regulation, focusing mainly on tax treatment. It may leave gaps in areas like market structure and investor protection. This is a partial solution, not a complete framework.

Horsford pushes PARITY Act as crypto tax baseline

Written by Brie CarterPublished May. 6 2026

Steven Horsford said his bipartisan PARITY Act offers a “durable floor” for crypto tax policy as broader legislation stalls in the US Senate.

Speaking at Consensus Miami, Horsford said incremental reform is the most viable path forward, with negotiations on the CLARITY Act currently “on hold.”

“PARITY is designed to set a durable floor, not to be the last word,”

Said Congressman Steven Horsford.

The proposal includes measures such as a cost-basis test for stablecoin payments, tax deferral for staking and mining rewards, and extending wash-sale rules to digital assets.

Horsford warned that comprehensive bills risk unintended consequences due to overly broad definitions, advocating instead for targeted updates within existing tax frameworks.

He also highlighted crypto’s potential role in closing the wealth gap, adding that expanding retirement account access to digital assets remains a priority.

The comments reflect ongoing uncertainty around US crypto regulation, with bipartisan efforts continuing but timelines for passage remaining unclear.