Rep. Max Miller Introduces Crypto Tax Bill in Congress

TLDR

• The bill introduces a $200 exemption for small crypto transactions.
• It aims to close a $50 billion tax gap from unreported transactions.
• The legislation supports innovation and consumer protection in crypto.

Rep. Max Miller from Ohio has introduced a new crypto tax bill in collaboration with Rep. Steven Horsford. This bill is named the Digital Asset PARITY Act. It aims to provide clarity on crypto taxation in the U.S., a significant move for consumers, innovators, and investors alike. The framework was announced by Rep. Miller at a House Ways and Means Subcommittee hearing on digital asset taxation.

The new legislation focuses on a de minimis exemption for small crypto transactions. This includes a $200 safe harbor for stablecoin transactions. The bill also addresses other areas such as tax deferrals for staking, updated rules for mining, wash sales, and integrating crypto assets into retirement plans. The aim is to reduce the compliance burden and stimulate innovation in the sector.

Legislation Framework and Innovative Features

During the announcement, Rep. Max Miller emphasized the need for a modern tax code that aligns with the pace of innovation. According to Miller, this will prevent the migration of innovation overseas. Rep. Horsford supported this sentiment, highlighting the taxing impact of even small crypto transactions and underscoring the need for consumer protection.

The bill aligns with several other 2025 legislative efforts, notably the GENIUS Act and the CLARITY Act. For stablecoins, which are dollar-pegged and regulated under the GENIUS Act, the PARITY Act offers a $200 exemption. Additional updates pertain to staking assets, mining, and retirement plans. These rules introduced by the bill are intended to simplify tax obligations.

Potential Tax Relief and Closing Tax Gaps

There are no specific funding allocations or institutional involvements detailed in the bill. Its primary focus is to provide tax relief which might help close an estimated $50 billion tax gap from crypto transactions not reported previously. However, no specific cryptocurrencies, such as ETH or BTC, are mentioned in the proposal.

Similar efforts were made by Sen. Cynthia Lummis with a tax reform bill earlier in July 2025. It mirrored Rep. Miller’s outline with its focus on de minimis gains, mining/staking, and other rules. These previous legislative efforts are expected to influence the text of the PARITY Act.

Implications for the Wider Cryptocurrency Market

The bill’s implications extend to stablecoins and broader digital assets involved in staking, mining, and trading activities. While no new data has emerged regarding TVL changes, liquidity shifts, or staking flows, the new tax rules could potentially reshape market dynamics over time.

Regulatory updates related to the bill include comparisons with the current GENIUS Act, CLARITY Act, and Executive Order 14178 from January 2025. These updates collectively aim to harmonize the tax and compliance landscape for digital assets, and reduce complexity for stakeholders.

Reception and Forward-Looking Developments

As of now, the bill has not elicited direct quotes or reactions from prominent crypto figures like Arthur Hayes, CZ, or Vitalik Buterin. Its reception in crypto communities and among developers remains limited as no specific reactions from forums like Twitter or Reddit have been recorded.

Finally, the draft does not specify any changes in community or developer sentiment, or GitHub activity. The emphasis remains on government portals such as congress.gov and waysandmeans.house.gov for formal information. The discourse around the bill is expected to grow as steps towards its potential passage unfold.