Momentum is building in Washington as lawmakers move closer to passing long-awaited cryptocurrency legislation, with parallel efforts on a revised tax bill adding to the regulatory push. Progress in negotiations on a sweeping digital asset bill has reduced major disagreements that once stalled efforts, according to industry participants and advisors.
Patrick Witt, a top crypto advisor to former President Donald Trump, signaled growing confidence at a Solana Policy Institute event, stating that earlier deadlocks have largely been resolved. "Negotiations once involved a dozen issues seen as impractical and deeply divided. Over recent months, lawmakers and stakeholders narrowed those disputes," Witt noted. A key Senate Banking Committee hearing is expected before the end of the month to amend and vote on the bill, marking a major step toward becoming law.
The legislation aims to define oversight between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), while setting standards for exchanges and disclosure requirements. However, several sticking points remain. Stablecoin policy is one of the most debated areas, specifically how rewards tied to stablecoins should be treated. A law passed in July 2025 bars issuers from paying interest directly to holders, but third-party platforms like Coinbase can still offer rewards. Crypto firms argue restrictions could slow innovation, while banking groups warn yield-bearing stablecoins could pull deposits from traditional institutions.
Other unresolved issues include protections for software developers, with law enforcement groups concerned about provisions limiting investigations, and ethics discussions around political figures entering the crypto market, as raised by Anthony Scaramucci.
Simultaneously, Congressmen Steven Horsford (D-Nev.) and Max Miller (R-Ohio) re-introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields (PARITY) Act in late March 2026. The bill seeks to update how the U.S. addresses crypto taxation. A key provision in the latest draft addresses "de minimis" gains for regulated payment stablecoins, stating that "no gain or loss shall be recognized on such sale unless the taxpayer’s basis in such stablecoin is less than 99 percent of the redemption value." This removes a previously proposed $200 threshold.
The bill would also apply wash sale rules to digital asset transactions and distinguish between "passive staking" and trading activities. While its path forward is uncertain, industry participants indicate a strong push to include crypto in any upcoming tax legislation. The overall direction of U.S. crypto policy appears clearer than in previous months, with lawmakers focusing on fine-tuning key provisions.
