US lawmakers have unveiled a bipartisan effort to modernize the federal tax code’s treatment of digital assets, with a particular focus on stablecoins, daily trading, staking and mining rewards.
Reps. Max Miller (R-OH) and Steven Horsford (D-NV) released a Digital Asset PARITY bill that aims to provide clearer and more practical tax rules for regulated and dollar-pegged stablecoins and reduce unnecessary reporting burdens for routine crypto payments, ensuring that daily transfers do not trigger capital gains reporting requirements for transactions below a specified amount.
The proposal also aims to clarify how revenues are derived from trading digital assets and extend the tax principles established for securities lending to qualifying digital asset lending, thereby bringing parity to virtual currencies under existing financial rules.
Additionally, the framework would give taxpayers flexibility in accounting for income from staking and mining rewards by allowing deferral under specified conditions, thereby addressing concerns about “phantom income” generated before the sale of assets.
According to MP Miller,
“The U.S. tax code has failed to keep pace with modern financial technology. This bipartisan legislation brings clarity, parity, fairness and common sense to the taxation of digital assets. 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.”
Lawmakers also propose applying wash sale and constructive sale rules to digital assets to avoid abusive tax shelter strategies and modernizing charitable deduction rules for highly liquid digital assets, reflecting a broad push to align cryptocurrency taxation with traditional financial systems and reduce ambiguity in the Internal Revenue Code.
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Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/art prodigital/Natalia Siiatovskaia
