US lawmakers introduced the PARITY Act to study crypto tax relief and ease reporting burdens on small transactions.
Crypto News
A bipartisan group of US House members has introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, known as the PARITY Act. The bill directs the US Treasury Department to study whether a de minimis tax exemption for small crypto transactions is workable and to provide interim guidance within 180 days on what relief it can offer under existing authority.
Republican Representative Max Miller, one of the bill's sponsors, said in a statement that the US tax code has not kept pace with the growth of digital assets and financial technology. Democratic Representatives Steven Horsford and Suzan DelBene, along with Republican Representative Mike Carey, also helped introduce the bill. An initial discussion draft was released in March 2026.
The bill does not itself create a de minimis exemption. Instead, it calls for a Treasury study on the compliance burden that small crypto transactions place on taxpayers, including a breakdown of how many transactions worth less than $200 are reported to the Internal Revenue Service each year. The bill also asks the Treasury to model what infrastructure the IRS would need if such an exemption were enacted and to identify potential abuse vectors that could emerge.
Kraken said last month that it submitted 56 million tax forms to the IRS in a single year, with nearly a third covering transactions worth less than $1 and more than 75% covering transactions under $50. The figures have been cited by industry participants as evidence that the current reporting framework creates a disproportionate administrative burden for everyday users.
Two provisions carried over from the bill’s March draft. One treats regulated payment stablecoins as equivalent to cash for tax purposes, with no recognized gains or losses unless a token's cost basis falls below 99% of its redemption value. The other creates a safe harbor for trading through brokers and applies wash sale rules to crypto assets.
Representative Miller told Bloomberg Tax he was confident the bill could pass before the current Congress ends in January 2027, as every House seat will be up for election in the November midterms. The Senate is expected to soon consider separate legislation outlining how US market regulators would oversee the digital asset industry.
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