US Lawmakers Propose Bipartisan Crypto Tax Rules

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A bipartisan pair of House legislators has introduced draft tax legislation for digital assets that would establish an exemption for specific stablecoin transactions and provide guidance on taxation timing for staking rewards, according to a Saturday Bloomberg report.

Representatives Max Miller, a Republican from Ohio, and Steven Horsford, a Democrat from Nevada, both serving on the House Ways and Means Committee, presented the Digital Asset PARITY Act.

The discussion draft would eliminate capital gains tax obligations on transactions using regulated stablecoins pegged to the dollar and valued under $200—a measure intended to remove compliance obstacles for routine purchases. Other cryptocurrencies would remain subject to existing tax rules.

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

For stablecoins to receive the safe harbor treatment, they must come from a permitted issuer under the GENIUS Act, maintain a peg exclusively to the US dollar, and have kept their price within 1% of $1.00 for no less than 95% of trading days over the previous year. The exemption excludes brokers and dealers. Lawmakers indicate they are still considering whether an annual cumulative limit should be added to ensure the provision does not shelter investment profits.