House Lawmakers Unveil Crypto Tax Relief Draft

Bipartisan lawmakers in the U.S. House of Representatives have introduced a discussion draft aimed at easing tax burdens for everyday cryptocurrency users, proposing exemptions for small stablecoin transactions and a deferral option for staking and mining rewards. The framework, developed by Representatives Max Miller of Ohio and Steven Horsford of Nevada, both members of the House Ways and Means Committee, seeks to update tax rules to better accommodate digital assets in routine payments and blockchain activities.

At the heart of the proposal, known as the Digital Asset PARITY Act, is a safe harbor that would exempt capital gains taxes on stablecoin transactions valued at less than $200. This provision targets regulated stablecoins pegged to the U.S. dollar and issued by entities permitted under the GENIUS Act, provided they are backed solely by dollars and have maintained a trading price within 1 percent of $1.00 for at least 95 percent of trading days over the past year. The exemption would not apply to brokers, dealers, or other cryptocurrencies like Bitcoin or Ether, focusing instead on consumer payments to avoid the compliance challenges posed by minor price fluctuations...