US Congress Considers Cryptocurrency Tax Reform

A group of US lawmakers has reintroduced legislation aimed at updating the taxation system for cryptocurrencies. The document seeks to align the tax code with modern developments in digital assets and mandates an analysis by the IRS of tax exemptions for small transactions. This is reported by Coindesk.com reports .

The "Parity Act," proposed by a group of representatives led by Steven Horsford and Max Miller, aims to protect digital assets, ensure accountability, and regulate innovation. Under the new version, transactions involving regulated stablecoins will not be treated as capital gains or losses, provided their cost basis is at least 99% of the redemption value.

The document also outlines provisions for creating a "safe harbor" for broker trading, applying "wash sale" rules to digital assets, and taxing income derived from validator activities. One of the most significant aspects is that the IRS will be required to study the possibility of introducing tax exemptions (de minimis) for small transactions under $200.

Crypto industry representatives have long demanded that small payments, such as buying a cup of coffee with Bitcoin, be exempted from tax reporting. This measure is expected to help cryptocurrencies gain popularity as a daily payment tool.

Congressman Horsford emphasized that tax policy is the foundation for determining the role of digital assets in the financial system. The current tax code is outdated and does not fully cover modern financial practices such as staking rewards, charitable donations, or crypto-lending.