Bipartisan Crypto Tax Bill Introduced in U.S. House

TLDR

• The PARITY Act proposes a $200 de minimis exemption for stablecoins.
• Mining and staking rewards can defer taxation for five years.
• The bill excludes NFTs and illiquid tokens from tax benefits.

Representative Max Miller (R-OH) and Representative Steven Horsford (D-NV) have introduced a bipartisan crypto tax bill draft. The Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (PARITY) Act proposes significant changes to crypto taxation. The bill, currently circulating in the U.S. House, aims to provide clarity on several tax-related matters.

The proposal includes a $200 de minimis exemption for stablecoin payments, deferred taxation on mining and staking rewards for up to five years, and nonrecognition treatment for lending fungible digital assets. The bill explicitly excludes NFTs, illiquid tokens, and derivatives from these measures.

Details of the Proposed Tax Bill

The bill intends to address tax incentives for the cryptocurrency market. During a July 2025 hearing, Rep. Max Miller emphasized the necessity of updating the tax code. He indicated that current regulations must evolve to support innovation and avoid driving innovation overseas.

Rep. Steven Horsford, the Democratic co-lead of the bill, noted that regulatory frameworks should enhance innovation while safeguarding consumers. According to Horsford, even minimal crypto transactions entail complex tax calculations, highlighting the need for clarity.

Rep. Max Miller stated, “We need a tax code that keeps up with innovation and not one that chases it overseas.”

Rep. Max Miller

Exclusions and Specifics in the Legislation

The PARITY Act exempts regulated stablecoins under the $200 de minimis rule. It also specifies nonrecognition treatment for lending fungible digital assets, excluding NFTs and tokens not actively traded. Rep. Miller has emphasized that illiquid tokens and derivatives will not receive these tax benefits.

No details on specific cryptocurrencies, such as Ethereum or Bitcoin, are included in the draft. The legislation omits references to altcoins, governance tokens, and DeFi protocols, among others. There is also no mention of on-chain data such as changes to total value locked (TVL) or liquidity shifts.

Bipartisan Efforts and Historical Context

Rep. Miller and Rep. Horsford are partnering to promote the PARITY Act, signaling bipartisan engagement. This development follows earlier comprehensive tax reform efforts from Miller during “crypto week” hearings. These initiatives aimed for clarity in stablecoin regulation but faced blockages before last year’s August recess.

While this bill introduces new clarity to digital assets, past efforts in stablecoin regulation encountered procedural hurdles. The current bill seeks to find a balance between innovation and regulatory responsibility, aligning with principles suggested by the President’s Working Group, yet distinct in its objectives.

For more insights, Rep. Horsford’s press release highlights various aspects of the initiative, drawing congressional attention to the evolving landscape of digital finance and regulation.

No statements from the SEC, CFTC, or other major regulatory bodies are available at this stage. The draft remains a congressional effort without external agency involvement noted. Primary coverage and discussions continue to center on legislative actions.