A draft bill released by U. S. House lawmakers on March 27, 2026, seeks to overhaul digital asset tax rules, but its exclusion of Bitcoin from certain exemptions is already drawing criticism. The "Digital Asset PARITY Act," introduced by Representatives Max Miller and Steven Horsford, aims to clarify tax treatment for various crypto activities, particularly concerning stablecoins. The draft proposes a tax exemption for stablecoin transactions under $200 and stipulates that capital gains tax would not apply to stablecoins if price fluctuations stay within $0.01 or 1%.
However, the proposed legislation notably omits Bitcoin from these exemptions, leading to concerns about fairness and potential market distortions. The Bitcoin Policy Institute, for example, argues that the draft "picks winners and losers" by favoring stablecoins over Bitcoin. They contend that a de minimis exemption is crucial for Bitcoin's maturation as a global medium of exchange. Cody Carbone, CEO of the Digital Chamber, emphasized the need for clarity in crypto taxes, but the Bitcoin community is strongly opposed to the current draft.
Beyond stablecoins, the draft addresses the tax treatment of income from DeFi activities, classifying income from lending, staking, and validator services as ordinary gross income. This would require taxpayers to recognize the fair market value of these assets at the time of receipt, aligning crypto income with traditional financial activities. The bill also allows anyone engaged in passive staking or passive validation to defer reporting income from that activity.
It is important to note that the "Digital Asset PARITY Act" is currently a discussion draft and has not yet been introduced as legislation. Its purpose is to stimulate dialogue among lawmakers, industry participants, and the crypto community on modernizing crypto tax policy. The proposed changes, if enacted, could significantly influence on-ramping activity, compliance costs, and how crypto yields are reported.
