Cross-party House Lawmakers Release Crypto Tax Plan

A Republican and Democratic representative have jointly released a proposed tax framework for cryptocurrencies that would exempt certain stablecoin transactions from taxation and provide clarity on the tax treatment of staking rewards, Bloomberg reported this past Saturday.

Representatives Max Miller of Ohio, a Republican, and Steven Horsford of Nevada, a Democrat, both members of the House Ways and Means Committee, made public the Digital Asset PARITY Act. The preliminary draft would free transactions using regulated, dollar-linked stablecoins worth under $200 from capital gains tax requirements—a component aimed at eliminating compliance headaches for routine commerce. Digital assets like Bitcoin and Ethereum would remain fully taxable.

“Like any emerging technology, cryptocurrencies need guardrails that allow innovation to grow while protecting consumers and the integrity of our tax system,” Horsford stated to KOLO. “Today, even the smallest crypto transaction can trigger tax calculation while other areas of the law lack clarity and invite abuse.”

Qualifying for the exemption requires stablecoins to be issued by entities approved under the GENIUS Act, be pegged exclusively to the US dollar, and have maintained valuation within 1% of $1.00 throughout at least 95% of trading days in the past 12 months. The provision excludes brokers and dealers from eligibility. According to the draft, lawmakers remain undecided on whether to impose an annual aggregate limit to prevent the measure from sheltering significant investment gains.