U.S. Bipartisan Lawmakers Propose PARITY Act to Modernize Digital Asset Tax Rules
A bipartisan bill known as the PARITY Act was unveiled on December 20, 2025, by U.S. Representatives Max Miller of Ohio and Steven Horsford of Nevada. The legislation aims to modernize tax regulations related to digital assets and address tax abuse in the crypto sector.
Key provisions of the bill include targeted tax exemptions for regulated stablecoins. Specifically, low-value stablecoin transactions under $200 would be exempt from capital gains tax if the stablecoins are dollar-pegged, actively traded, and issued by federally regulated entities. This stablecoin exemption would take effect starting with tax years after 2025.
The bill also offers optional tax deferral on rewards from staking and mining activities. To prevent tax-loss harvesting in crypto, wash-sale rules would now apply to digital assets. Additionally, the measure introduces mark-to-market accounting for active digital asset traders and a constructive-sale doctrine for crypto hedging practices.
Nonrecognition treatment would be granted for certain digital asset loans, though the bill excludes non-fungible tokens (NFTs) and thinly traded tokens from its scope. It also extends tax benefits to foreign investors trading crypto through U.S. brokers.
Most provisions of the PARITY Act take effect immediately upon enactment, except for the stablecoin exemption, which begins with tax years after 2025.
