U.S. lawmakers push a bill to make regulated stablecoin transactions tax-free. Here’s what the PARITY Act means for crypto payments.
U.S. lawmakers are taking a fresh look at how stablecoins get taxed.
Representatives Steven Horsford (D-Nev.) and Max Miller (R-Ohio) released an updated discussion draft of the Digital Asset PARITY Act.
The bill could exempt most regulated payment stablecoin transactions from capital gains taxes. It aims to treat compliant stablecoins more like everyday cash. The move has stirred strong reactions across the crypto community.
Related reading:
US Lawmakers Propose Digital Asset PARITY Act to Reform Crypto Tax Rules
What the Digital Asset PARITY Act Actually Proposes
The bill states that no gain or loss applies to the sale of a regulated payment stablecoin, provided the taxpayer’s basis stays above 99% of the redemption value.
In simple terms, if the stablecoin holds close to $1, the transaction triggers no taxable event. This removes a long-standing friction point. Under current IRS rules, spending USDC or USDT is treated the same as selling stock.
THIS IS BULLISH FOR CRYPTO.
🇺🇸 U.S. lawmakers have reintroduced a revised version of the Digital Asset PARITY Act, which could make everyday transactions using regulated payment stablecoins effectively tax-free in many cases.
The updated bill includes this key provision:
“In… pic.twitter.com/7Iuc119fog
— Wilberforce Theophilus (@Eze_Wilberforce) April 14, 2026
The updated draft also drops the previous $200 de minimis threshold that appeared in earlier versions. A deemed $1 cost basis now applies to certain exchange or redemption scenarios.
This change further cuts the administrative burden for everyday users. Tracking minor price fluctuations would no longer be required for qualifying stablecoins.
The PARITY Act first appeared as a discussion draft in December 2025.
Representatives Horsford and Miller relaunched the revised version in March 2026. The bipartisan effort reflects months of work to align digital asset tax rules with those already governing stocks and commodities.
Read also:
GENIUS Act Compliance and Stablecoin Eligibility
Not every stablecoin qualifies under this bill.
To receive the tax relief, a stablecoin must meet the definition set out in the GENIUS Act. It must be pegged to the U.S. dollar, issued by a permitted entity, and must consistently trade within 1% of $1. These criteria narrow the field to regulated, compliant issuers only.
The bill does not extend any of this relief to volatile assets. Bitcoin, Ethereum, and similar cryptocurrencies remain outside the scope of these exemptions.
This distinction has drawn criticism from some corners of the crypto space. Several Bitcoin supporters argue the bill unfairly favors stablecoins over other digital assets.
Staking rewards also get attention in the updated draft. Taxpayers can choose to pay tax on staking income when received or defer it for up to five years.
Additionally, the bill targets a common tax loophole. It closes the practice of selling crypto at a loss for deductions, then buying it back immediately.
BREAKING: The U.S. just introduced a bill that would make stablecoin transactions completely tax free.
Right now, every time you use USDC or USDT to pay for anything, the IRS treats it like selling a stock. You owe tax on every single transaction, even if the gain is less than a… pic.twitter.com/R06klOZhyh
— Bull Theory (@BullTheoryio) April 14, 2026
Crypto Market Reaction and What Comes Next
The stablecoin sector currently holds a market cap of $318 billion. Many in the crypto industry view the PARITY Act as a strong signal of regulatory progress.
Social media reactions reflect widespread enthusiasm, with several accounts calling the bill a major win for stablecoin payments. Posts on X describe the proposal as bullish for the broader crypto ecosystem.
Still, the bill remains a discussion draft. Congress has not yet voted on it, and details could shift as it moves through the legislative process.
Observers note that the removal of the de minimis threshold is a notable change from the December version. Earlier drafts allowed small transactions below $200 to be exempted from reporting.
The bill’s sponsors frame it as a practical solution for routine consumer use. Their goal is to make compliant stablecoins function like cash in daily commerce.
Whether Congress advances the legislation remains to be seen. For now, the crypto industry is watching closely as the discussion continues on Capitol Hill.
