US Lawmakers Release Crypto Tax Proposal Without Bitcoin Exemption

US lawmakers have introduced a draft proposal aimed at reshaping digital asset taxation, but the plan has drawn attention for excluding a tax exemption for Bitcoin transactions. The proposed legislation, titled the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (Digital Asset PARITY) Act, was released as a discussion draft to encourage debate on clearer crypto tax rules.

The bill seeks to update the Internal Revenue Code of 1986 by defining how digital assets are taxed and reported. It proposes that dollar-pegged stablecoins would not trigger gains or losses if their value remains within 1% of $1, meaning minor price fluctuations would not create taxable events.

Stablecoin Tax Relief and Transaction Threshold Details

The draft introduces a de minimis exemption for stablecoin transactions valued below $200, meaning transfers under this amount would not require tax reporting. However, the total yearly exemption cap has not yet been finalized.

Under the proposal, transaction fees used to acquire or transfer regulated stablecoins cannot be included in the investor’s cost basis. Additionally, income earned through lending, staking, or validator services would be taxed annually based on fair market value.

Rep. Steven Horsford, pictured center, and Rep. Max Miller, pictured right, speak about the future of crypto policy ;

Bitcoin Exclusion Sparks Industry Debate

Despite offering tax clarity for stablecoins, the proposal does not include a similar exemption for Bitcoin, creating division within the digital asset sector. Some industry figures argue that excluding Bitcoin from small-transaction tax relief could slow everyday adoption and increase reporting burdens.

The draft has not yet been formally introduced in Congress, and lawmakers are using the proposal to gather feedback from industry participants and policymakers before advancing the legislation.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.