U.S. Lawmakers Reintroduce Parity Act To Direct IRS Review Of Crypto Transactions Under $200

A bipartisan group of U.S. lawmakers reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, or the Parity Act, with revised language aimed at modernizing how the U.S. tax code treats digital assets.

“A bipartisan group of lawmakers introduced a revised crypto tax bill Wednesday that aims to update the tax code to better address crypto use cases and would, if signed into law, direct the IRS to analyze the effect de minimis exemptions might have”

CoinDesk

The bill would direct the Internal Revenue Service to evaluate the tax impact and compliance costs for digital asset transactions under $200, and to study whether a de minimis exemption for small crypto transactions could reduce reporting burdens without opening new avenues for abuse.

Traders Union

CoinDesk said the new version would have “regulated payment stablecoins” incur no gain or loss unless the cost basis is less than 99% of the redemption value of the stablecoin.

CoinDesk also reported that the Parity Act would create a safe harbor for trading through brokers or in taxpayer accounts, define how “wash sale” rules might apply to digital assets, and address the tax treatment of digital assets earned through validator activity.

Rep. Steven Horsford, a Democrat from N.V., framed the Parity Act as a response to an outdated federal tax code that does not account for the modernization of digital assets.

At CoinDesk's Consensus Miami conference earlier this month, Horsford said, “I actually think tax is the foundation. Why? Because it's tax policy that will determine number one, how these digital assets can be used in our finance system.”

Zamin.uz

In the same remarks, Horsford said, “none of the current regulatory policy framework tells a consumer, an institution, or a builder what happens to their taxes when they sell a digital asset.”

CoinDesk reported that the bill is meant as a first step toward broader crypto tax reform, while also directing the IRS to consider how a de minimis carveout might be abused.

The Parity Act’s IRS review would focus on how many transactions worth less than $200 are captured under existing law for “small digital asset transactions.”

CoinDesk said the review would also include what the IRS would need if a de minimis exemption were created for crypto transactions, including whether and how such an exemption might be abused.

The Traders Union account described the bill as ordering the IRS to study whether a de minimis exemption could reduce reporting burdens “without opening new avenues for abuse,” tying the exemption question to compliance costs.

Separately, Zamin.uz said the measure would require the IRS to analyze the possibility of introducing de minimis tax exemptions for small transactions under $200, reflecting the bill’s emphasis on easing tax reporting for low-value crypto activity.