A bipartisan group of House lawmakers reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields Act — known as the PARITY Act — on May 19, pushing forward a long‑sought reform to streamline cryptocurrency taxation. The bill directs the Treasury Department to study a de minimis exemption for digital asset transactions under $200, a move that could one day eliminate tax reporting headaches for millions of small, everyday crypto purchases.
Sponsored by Representatives Steven Horsford, Max Miller, Suzan DelBene, and Mike Carey, the legislation does not immediately create a blanket exemption. Instead, it mandates the IRS to assess the economic and administrative burden of tracking low‑value transfers. The study would evaluate how many sub‑$200 transactions are reported, the compliance costs for users, and what systems the agency would need to implement a future permanent safe harbor. Industry data underscores why this matters: Kraken filed 56 million crypto tax forms for 2025, with the vast majority covering transfers of less than $50.
The PARITY Act also targets stablecoins and staking. A deemed‑basis rule would treat regulated dollar‑pegged payment stablecoins like cash for tax purposes, while adding anti‑abuse controls. Miners and stakers would benefit from an election to defer recognition of rewards, addressing the “phantom income” issue that forces taxpayers to pay tax on tokens they may not have sold. The bill further includes safe‑harbor provisions for professional traders and wash‑sale rule updates.
“Washington cannot afford to stay stuck in the past,” said Horsford, emphasizing that unclear rules create uncertainty for consumers, investors, and businesses. The reintroduction follows a previous version in the last Congress and comes amid broader crypto legislative momentum in Washington. The Senate Banking Committee recently advanced the CLARITY Act, and Coinbase spent over $1 million on lobbying in early 2026, focusing on digital asset tax treatment. While the PARITY Act is still in its early stages, its provisions mark a concrete step toward making crypto more practical for daily payments and long‑term investment.
