PANews, May 21 — According to CoinDesk, bipartisan U.S. lawmakers reintroduced a revised version of the cryptocurrency tax legislation, the “Protecting Americans’ Rights in Taxation for digital Yields” (PARITY) Act, on Wednesday. If enacted into law, the bill would direct the Internal Revenue Service (IRS) to review the potential impacts of a de minimis exemption. The updated version specifies that “regulated payment stablecoins” would not generate gains or losses when their cost basis is no less than 99% of their redemption value; establishes a safe harbor for transactions conducted through brokers or taxpayer accounts; defines how the “wash sale” rules apply to digital assets; and clarifies the tax treatment of digital assets earned by validators through staking. Additionally, the bill requires the IRS to examine the tax burden associated with small-value digital asset transactions, assess how many transactions under $200 are currently covered by existing laws, and study the feasibility and potential risks of abuse related to a de minimis exemption. Representative Horsford stated that tax law is foundational and that the current federal tax code is outdated, failing to account for the modern realities of digital assets.
