Bipartisan U.S. Lawmakers Draft Crypto Tax Bill with Stablecoin Exemptions and Staking Relief

By Matt Brienen

Published: 2025-12-22T18:32:33+00:00

A bipartisan pair of U.S. House representatives has unveiled a draft **cryptocurrency tax bill** aimed at modernizing how digital assets are treated under the federal tax code. The proposal — often referred to as the **Digital Asset PARITY Act** — focuses on two of the most persistent pain points for crypto users: the tax treatment of everyday stablecoin transactions and the way staking and mining rewards are taxed.

Under current law, stablecoin transactions — even for tiny purchases like coffee — can trigger capital gains reporting, creating a disproportionate burden for consumers trying to use digital dollars as money. The new draft bill would create a **safe harbor** for transactions in regulated, dollar-pegged stablecoins that stay within a tight price range, exempting purchases under **$200** from capital gains tax. The intent is to make regulated stablecoins function more like cash in everyday payments without triggering unnecessary tax paperwork.

On the staking side, the bill tackles a longstanding issue often called “phantom income.” Today, rewards earned from staking or mining are taxed as income at the moment they are received — even if the holder doesn’t sell them and the market value fluctuates. The draft would allow taxpayers to **defer recognition of staking and mining rewards for up to five years**, after which the income would be taxed as ordinary income at fair market value. This elective deferral aims to align tax timing with economic reality and give long-term participants greater flexibility and predictability.

Beyond these headline provisions, the draft also proposes extending certain existing tax rules from traditional markets — such as **wash sale rules** and mark-to-market accounting options — to digital assets under defined conditions. The goal is to reduce friction between crypto tax treatment and the regime that applies to traditional securities, making compliance easier for traders, small businesses, and everyday users alike.

While the bill remains an early draft and could evolve significantly through the legislative process, its bipartisan backing signals growing recognition on Capitol Hill that tax policy must adapt to the realities of digital-asset usage. If enacted, this framework could lower barriers to crypto payments, simplify record-keeping for participants, and provide clearer, fairer rules for staking rewards — bringing the U.S. tax code closer to the way many people actually use digital assets in everyday life.