Bipartisan Bill Proposes Tax Relief for Stablecoin Users and Crypto Miners

WASHINGTON, Dec. 22, 2025 - U.S. lawmakers from both parties have introduced a new legislative proposal to modernize the taxation of digital assets. The Digital Asset PARITY Act, unveiled by Reps. Max Miller (R-Ohio) and Steven Horsford (D-Nev.), seeks to align crypto taxes with traditional investment rules while addressing concerns from the industry about regulatory uncertainty according to reports. The bill, if passed, would ease compliance burdens for small-stablecoin users and provide relief to stakers and miners as per the draft.

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key provision in the draft would exempt transactions involving regulated, dollar-pegged stablecoins under $200 from capital gains taxes. This move is designed to reduce the administrative burden for everyday users, as even minor crypto transactions currently trigger tax calculations. The exemption would apply only to stablecoins issued by permitted entities and pegged to the U.S. dollar according to the framework.

The bill also proposes a compromise on when staking and mining rewards are taxed. Currently, the IRS taxes these rewards as income upon receipt, which critics argue creates a "phantom income" problem. Under the new framework, taxpayers could elect to defer taxation on such rewards for up to five years, after which they would be taxed as ordinary income at fair market value. This approach aims to balance the need for tax collection with the liquidity concerns of investors as analysts suggest.

Stablecoin Exemption and Compliance Concerns

The stablecoin exemption is a focal point of the PARITY Act. To qualify, stablecoins must be issued by permitted entities under the GENIUS Act and maintain a value within 1% of $1.00 for the majority of trading days. Brokers and dealers would not be eligible for the exemption, and lawmakers are still considering an annual cap to prevent the provision from being used to shelter investment gains according to the bill's draft.

This provision is seen as a pragmatic step toward integrating stablecoins into the broader financial system. It aligns with similar de minimis exemptions passed by several U.S. states and reflects growing momentum for national standards. Lawmakers emphasize that the draft is still under negotiation and may evolve as industry stakeholders and tax professionals weigh in as the framework is being developed.

Industry Reactions and Tax Framework Evolution

The bill has drawn support from crypto industry groups, which argue that current tax rules create unnecessary friction for everyday transactions and investment strategies. The Blockchain Association, for instance, recently urged the Senate to reconsider restrictions on stablecoin rewards, warning that overregulation could stifle innovation and favor large incumbents according to industry analysis.

In addition to stablecoin and staking provisions, the bill extends several securities tax rules to digital assets. It applies wash-sale and constructive-sale rules to actively traded crypto assets, preventing investors from claiming losses by immediately repurchasing the same token. It also allows eligible traders to use mark-to-market accounting for tax purposes, a provision that could simplify reporting for active crypto investors as per the proposed framework.

Timeline and Implementation Outlook

The key provisions of the PARITY Act would apply to tax years beginning after Dec. 31, 2025. Miller, a member of the House Ways and Means Committee, has expressed optimism that the bill could move through the legislative process and reach a vote by August 2026 as lawmakers state.

The draft reflects a broader effort to create a predictable and equitable tax environment for digital assets. As more states adopt crypto-friendly policies, the pressure to establish a national framework is intensifying. Analysts suggest that the bill's bipartisan support could help it withstand political headwinds and gain broader acceptance among lawmakers and industry participants according to industry experts.