As per Bitcoin.com, a bipartisan bill in Congress is advancing a framework to modernize tax policy for digital assets. The Digital Asset PARITY Act, introduced by Reps. Steven Horsford (D-Nev.) and Max Miller (R-Ohio), seeks to align the taxation of digital assets with long-standing principles applied to stocks and commodities. The proposal includes provisions such as a de minimis framework for stablecoins, clearer rules for foreign investors, and mark-to-market accounting for active traders. It also addresses phantom income for miners and stakers by allowing deferred income recognition. The bill aims to reduce compliance burdens and bring clarity to the taxation of digital assets.
Bipartisan Digital Asset PARITY Act Aims to Align Crypto Taxation With Traditional Markets
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Summary
A bipartisan bill in Congress is pushing forward a framework to modernize crypto taxation. The Digital Asset PARITY Act, led by Reps. Steven Horsford (D-Nev.) and Max Miller (R-Ohio), aims to align digital asset regulation with existing tax rules for stocks and commodities. The proposal includes a de minimis framework for stablecoins, clearer rules for foreign investors, and mark-to-market accounting for active traders. It also allows deferred income recognition for miners and stakers to address phantom income. The bill seeks to reduce compliance burdens and bring clarity to crypto taxation.
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