Digital Asset PARITY Act
Sponsored By: Representative Miller, Max L. [R-OH-7]
Introduced
Summary
This bill would create specialized tax rules for digital assets. It sets clear definitions and a new set of tax treatments for trading, lending, stablecoins, and validation activities like mining and staking.
Show full summary
- Individual taxpayers and investors: Wash sale rules would apply to digital assets. The bill also requires a Treasury study and a report to Congress within one year on low-value consumer transactions, reporting gaps, and compliance burdens.
- Dealers and traders: Offers a mark-to-market election for dealers and traders in "actively traded" digital assets and applies constructive sale rules. "Actively traded" includes thresholds like $50 million in trading volume and $10 billion in market capitalization.
- Validators and miners: Creates a new tax subchapter for assets acquired through validation activities and defines "mining" and "staking." The Secretary of the Treasury can issue regulations on forks, airdrops, and similar phenomena.
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 1 benefits, 3 costs, 3 mixed.
New legal tests for digital assets
This bill would add many statutory definitions used across the Act. It would define "digital asset," "digital asset exchange," and "validation activity," and set an "actively traded" test that requires $50 million trading volume (two prior years), $10 billion market cap (three prior years), and a 5% ownership limit. The dollar tests would be inflation-adjusted after 2025 using a 2024 base and rounded to the nearest $100,000. The Treasury Secretary could treat similar activities as mining or staking or provide exceptions.
Tax limits for regulated stablecoin holders
This bill would say you would not recognize gain or loss when you sell or exchange a regulated payment stablecoin unless your basis is less than 99% of the coin's redemption value. On an exchange, the acquirer's basis would be treated as $1 and transaction costs are excluded from basis. The rule would not apply to dealers or traders and would apply to taxable years beginning after December 31, 2025.
Loss and constructive-sale rules for crypto
This bill would apply wash-sale rules to digital assets and treat whether two assets are "substantially identical" by economic exposure. Trading on different blockchains or having different voting rights would not automatically avoid the rule. It would also extend constructive-sale rules to digital assets. These changes would apply to sales and constructive sales after enactment.
Stricter crypto donation rules and penalties
This bill would require a contemporaneous written acknowledgment included with your return for donations of non-actively traded digital assets valued over $500. If the donee later sells the asset, your deduction would be limited to the donee's gross proceeds. Donee organizations that knowingly give false acknowledgments or fail to provide required ones would face a penalty equal to the greater of the highest tax rate times the stated sales price or the gross proceeds. These rules would apply to contributions in taxable years beginning after enactment.
Tax rules for crypto lending income
This bill would treat substitute payments paid to a lender in place of staking rewards, fees, or protocol distributions as ordinary income to the lender. It would also require basis adjustments and gives the Treasury rulemaking authority, including for forks and airdrops. These amendments would apply to exchanges in taxable years beginning after enactment.
Mark-to-market and trading safe harbor
This bill would let dealers in actively traded digital assets elect mark-to-market accounting, and let traders in that trade or business also elect it. It would also create a trading safe harbor that treats trading through a resident broker, custodian, or exchange as covered for character and sourcing, but the safe harbor would not apply to dealers. These provisions would apply for taxable years beginning after enactment, and Treasury would issue implementing rules.
New tax rules for crypto validators
This bill would make newly created tokens you receive as a validator taxable as ordinary income in the year you get them, and your basis in the token would increase by that amount. You would be able to elect a five-year deferral that capitalizes transaction costs and treats sales during the election as ordinary income. The bill would also say "passive staking" is not a trade or business for tax purposes. These rules would apply to assets acquired in taxable years beginning after December 31, 2025.
Sponsors & CoSponsors
Sponsor
Miller, Max L. [R-OH-7]
OH • R
Cosponsors
Rep. Horsford, Steven [D-NV-4]
NV • D
Sponsored 5/19/2026
Rep. Carey, Mike [R-OH-15]
OH • R
Sponsored 5/19/2026
Rep. DelBene, Suzan K. [D-WA-1]
WA • D
Sponsored 5/19/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov