Latest Congressional swing at crypto tax reform would direct IRS to review de minimis exemptions

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Latest Congressional swing at crypto tax reform would direct IRS to review de minimis exemptions The newest version of the Parity Act updates language around payment stablecoins and directs the IRS to report on how a de minimis exemption might work. By Nikhilesh De | Edited by Jesse Hamilton May 20, 2026, 6:07 p.m. 2 min read Make preferred on Rep. Steven Horsford (CoinDesk) A bipartisan group of lawmakers introduced a revised crypto tax bill Wednesday that aims to update the tax code to better address crypto use cases and would, if signed into law, direct the IRS to analyze the effect de minimis exemptions might have. Congressmen Steven Horsford (D-N.V.), Max Miller (R-Ohio), Suzan DelBene (D-Wash.) and Mike Carey (R-Ohio) reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act , otherwise known as the Parity Act, that Horsford and Miller had previously pushed a few times. The new language comes a week after lawmakers reportedly met to discuss crypto tax reform. The new version of the bill calls for "regulated payment stablecoins" to incur no gain or loss unless the cost basis is less than 99% of the redemption value of the stablecoin, and it also creates a safe harbor for trading through brokers or in taxpayer accounts, defines how so-called "wash sale" rules might apply to digital assets and addresses how digital assets earned by acting as a validator. The bill also directs the IRS to review what sort of tax burden crypto holders face when it comes to "small digital asset transactions" and how many transactions worth less than $200 are captured under existing law. This review should include the IRS' needs if there was a de minimis exemption — meaning a carveout for activity that the law should consider too small to be concerned with — for crypto transactions, as well as whether and how such an exemption might be abused. The crypto industry has long argued that freeing taxpayers of the burden of having to file and report taxes on small transactions would make it easier to use crypto as a payments tool for small items like a cup of coffee. The bill is meant to just be a first step toward broader crypto tax reform, Horsford said at CoinDesk's Consensus Miami conference earlier this month. "I actually think tax is the foundation. Why? Because it's tax policy that will determine number one, how these digital assets can be used in our finance system. And at a time when our federal tax code is outdated, it does not take into account the modernization of digital assets," he said. "For example, none of the current regulatory policy framework tells a consumer, an institution, or a builder what happens to their taxes when they sell a digital asset, earned staking reward, lend crypto on the U.S. platform or make a charitable contribution in bitcoin," the lawmaker said "Those are tax questions. And they remain entirely unresolved." Tax More For You Prediction markets firms take heat in Senate Commerce hearing scrutinizing surge By Jesse Hamilton | Edited by Nikhilesh De 52 minutes ago Sports betting on firms such as Kalshi was the focus of questions over advertising to children, cheating from athletes and undermining regulated gaming. What to know : The fast-growing prediction markets sector where users bet on the outcome of events, including in sports and politics, was the focus of a hearing from the U.S. Senate Commerce Committee. Lawmakers from both parties were critical of cheating scandals, advertising practices and the potential for the industry to undermine gaming... Read full story Latest Crypto News Prediction markets firms take heat in Senate Commerce hearing scrutinizing surge 52 minutes ago Crypto custody firm Copper is looking to sell the company for $500 million 59 minutes ago The Protocol: Ethereum Foundation's high-profile departures spark fresh debate 1 hour ago Why Trump's bitcoin ETF plans likely collapsed before getting off the ground 1 hour ago Crypto Long & Short: Bitcoin-backed loans belong in the cost-of-capital conversation 1 hour ago EU opens MiCA consultation to review if crypto framework is still fit for purpose 2 hours ago Top Stories Live markets: Crypto prices buoyed by Trump's 'final stages' remark 3 hours ago South Korean funeral company reveals $33 million loss on leveraged ether ETF bet 3 hours ago Crypto campaign cash from Fairshake flooded Southern primaries, picked winners 3 hours ago Telegram group at center of Jane Street insider-trading allegations in Terra collapse 6 hours ago These bitcoin metrics suggest February’s $60,000 selloff may have marked the bottom 6 hours ago Vitalik Buterin outlines Ethereum's privacy measures. Here is what it means for the network and ETH 4 hours ago