U.S. Representatives Steven Horsford, Max Miller, Suzan DelBene, and Mike Carey introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (PARITY) Act on May 19. The bill does not immediately exempt small crypto transactions from taxes. Instead, it orders the Treasury Department—which oversees the IRS—to study a de minimis exemption and clarify what relief the agency can offer under existing authority.
Small payments under review: Kraken filed 56 million forms
The study will assess the reporting burden from low-value transactions. It will count how many crypto transactions under $200 are reported to the IRS each year and what systems the agency would need if Congress later enacts a small-payment exemption. Kraken's data underscores the scale: the exchange said it filed 56 million crypto tax forms for 2025, with most covering transactions under $50. Horsford argued that unclear rules create uncertainty for consumers, investors, companies, and regulators, adding that "Washington cannot afford to stay stuck in the past."
Stablecoin cash treatment and deferred staking taxation
The PARITY Act includes a deemed-basis rule for regulated dollar-pegged payment stablecoins. Horsford's office said this treats digital dollars used like cash as cash for tax purposes, while adding controls against trading and arbitrage misuse. The bill keeps provisions for staking, mining, digital asset loans, professional traders, and wash-sale rules. A key provision allows taxpayers to elect to defer recognition of staking and mining rewards, addressing the "phantom income" issue. Separately, 18 bipartisan lawmakers had already asked the IRS to review its 2023 staking guidance before the 2026 tax year.
Congressional crypto momentum builds
The bill arrives as Congress reviews several digital asset measures. Bloomberg Tax reported that digital asset tax writers finalized the text as crypto policy gained momentum in Washington. The tax push parallels broader market-structure talks: the Senate Banking Committee advanced the CLARITY Act in a 15-9 vote, moving a wider crypto oversight bill closer to a Senate floor vote. Coinbase spent $1.07 million on lobbying in the first quarter of 2026, with filings covering digital asset tax treatment, the CLARITY Act, and stablecoin rules.