US House lawmakers release draft bill to overhaul crypto tax rules

JH Kim

Summary

US House lawmakers reported that they have released a draft of the “Digital Asset PARITY Act” to comprehensively overhaul the digital asset tax framework.
The bill states that it would exempt capital gains tax when stablecoin price fluctuations are within $0.01 or 1%, and exclude transaction costs for dollar-pegged stablecoins from the cost basis.
It adds a de minimis exemption for transactions under $200 to waive tax and reporting obligations, while noting that the annual exemption cap remains undecided and will be subject to further discussions.

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US House lawmakers have released draft legislation to comprehensively revamp the tax framework for digital assets (cryptocurrencies).

According to crypto-focused media outlet Cointelegraph on the 27th (local time), Reps. Max Miller and Steven Horsford introduced a draft of the “Digital Asset PARITY Act.”

The bill centers on easing the tax burden on stablecoins, proposing an exemption from capital gains tax when price fluctuations are within $0.01 or 1%.

It also stipulates that transaction costs incurred in acquiring and transferring dollar-pegged stablecoins be excluded from the cost basis calculation.

In addition, it includes a provision to apply a de minimis exemption for transactions under $200, waiving tax and reporting obligations.

However, the annual exemption cap has yet to be determined, and the draft is expected to undergo further discussions with stakeholders and the industry before being submitted to Congress.