US lawmakers are developing a cryptocurrency tax framework that would cover stablecoin payments.
The bill, released Saturday (December 20) by U.S. Representative Max Miller, R-Ohio, and U.S. Representative Steven Horsford, D-Nev., is designed to update the tax code on digital assets.
“The U.S. tax code has failed to keep pace with modern financial technology,” Miller said in a statement. press release.
“This bipartisan legislation brings clarity, parity, fairness and common sense to digital asset taxation. It protects consumers making everyday purchases, ensures the rules are clear for innovators and investors, and strengthens compliance so everyone plays by the same rules.”
The bill aims to create what lawmakers call a “common-sense tax treatment” for regulated businesses. stable payment coinswhile ensuring that daily payment transactions do not trigger unnecessary tax filings.
The legislation would also clarify revenue source rules for trading digital assets, which lawmakers say provide certainty for U.S. and foreign market participants while meeting strict tax enforcement standards.
Advertisement: Scroll to continue
And the law would also extend current tax rules on securities lending to digital assetsto ensure “that bona fide digital asset lending is not treated as a taxable sale,” the statement added.
“Like any emerging technology, cryptocurrencies need guardrails that allow innovation to flourish while protecting taxpayers and the integrity of our tax system,” Horsford said.
“Today, even the smallest crypto transaction can trigger the tax calculation, while other areas of the law lack clarity and invite abuse. Our Digital Asset Parity Act Discussion Draft takes a targeted approach that provides a level playing field for consumers and businesses to benefit from this new form of payment.”
In other crypto regulation news, the Federal Deposit Insurance Corporation. (FDIC) said last week that it was studying a proposal that would establish procedures by which the banks it supervises could seek to issue stablecoin payments.
“Under the proposal, the FDIC would adopt a tailored application process that would allow it to evaluate the safety and soundness of an applicant’s proposed activities based on statutory factors while minimizing the regulatory burden on applicants,” the FDIC Acting Chairman said. Travis Hill said in a statement.
As PYMNTS wrote a few days later, the proposed regulation – a first under the GENIUS Law – is important for banks because it provides regulatory clarity and allows internal investment committees to approve pilot projects.
“This allows institutions to move beyond proofs of concept to production systems,” this report states. “In other words, the regulations are don’t slow down stablecoins This year. This allows them.
