U.S. Lawmakers Propose Revised Crypto Tax Framework via PARITY Act

U.S. lawmakers have introduced a revised version of the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields (PARITY) Act, aiming to refine the tax treatment of digital assets. The legislation comes as Congress prepares to address broader tax policies in the coming months, with industry participants pushing for crypto-specific updates to be included in upcoming law. The bill seeks to resolve long-standing industry requests for 'de minimis' exemptions, which would allow small-scale transactions to occur without triggering complex capital gains reporting. This would potentially enable users to utilize digital assets for everyday purchases, such as coffee, without the administrative burden of reporting every single transaction. In the March 2026 draft, the lawmakers shifted away from a flat $200 threshold for regulated payment stablecoins. Instead, the proposal suggests that no gain or loss be recognized unless the taxpayer's basis in a stablecoin is less than 99 percent of its redemption value. Additionally, the bill establishes a deemed basis of $1 for exchanges, which are treated separately from stablecoin sales. Beyond stablecoins, the updated text incorporates wash sale rules for digital assets, aligning the crypto market with traditional securities tax laws. The act also attempts to create a clear regulatory distinction between passive staking and active trading activities. While the industry is advocating for these changes, the path to enactment remains uncertain. The bill's ultimate success may depend on whether it is integrated into a larger reconciliation tax bill or influenced by the administration's fiscal year 2027 budget requests.