Horsford pushes crypto tax parity, awaits Republican response

Rep. Steven Horsford (D‑NV) has laid out his crypto‑tax demands in the Digital Asset PARITY Act and is now waiting for Republicans to act, warning he will oppose separate GOP proposals unless his amendments on validation rewards and charitable‑deduction loopholes are adopted [1].

Key takeaways

• The PARITY Act proposes a $200 de‑minimis exemption for stablecoin purchases [1].
• It would reclassify staking rewards to avoid “phantom income” taxation [1].
• Horsford seeks added language on validation‑reward taxation and charitable‑deduction safeguards [1].
• A House Ways and Means Committee hearing on June 9 will be the next decisive step [1].
• The bill is co‑authored with Rep. Max Miller (R‑OH), who also plans a complementary crypto‑tax proposal [3].

Legislative push and bipartisan framing

The Digital Asset PARITY Act, first drafted on Dec. 20, 2025, aims to align IRS treatment of digital assets with rules that apply to traditional securities. Among its core provisions is a de‑minimis exemption that would prevent capital‑gains calculations on stablecoin transactions under $200, a change that would simplify reporting for everyday users [1]. The bill also seeks to address the current tax treatment of staking rewards, which the IRS classifies as ordinary income at the moment they are received, creating a “phantom income” burden for holders. By reframing these rewards, the legislation would reduce the tax liability that accrues before any actual profit is realized [1].

Horsford’s specific demands focus on two additional safeguards. First, he wants the act to explicitly cover validation rewards—a broader category that includes staking income—ensuring consistent tax treatment. Second, he aims to close potential loopholes in charitable‑deduction rules that could allow donors to exploit differences between cost basis and market value of digital assets, a gap not present with conventional securities [1]. He has warned that he will oppose any standalone Republican‑led crypto tax measures that omit these provisions.

Rep. Max Miller, a Republican member of the Ways and Means Committee, is collaborating with Horsford on the PARITY Act and has announced plans to introduce a separate “crypto tax” bill that would complement the effort. Miller describes the initiative as a bipartisan step toward modernizing the tax code and positioning the United States as a leader in digital‑asset regulation [3]. He has emphasized the need for clear guidance, noting that businesses face “new layers of market exposure” without it [3].

Why it matters

The PARITY Act has become one of the few viable avenues for digital‑asset reform this congressional session, especially as Senate efforts on related market‑structure bills have stalled. Its outcome could set the precedent for how staking income, small‑value crypto transactions, and charitable donations of digital assets are taxed nationwide. The upcoming June 9 hearing will reveal whether Republican lawmakers will incorporate Horsford’s amendments, signaling a potential compromise or a continued legislative impasse. The resolution will affect investors, crypto businesses, and the broader push for tax parity between digital and traditional financial instruments.