Horsford Awaits GOP Response on Crypto Tax

Rep. Steven Horsford is waiting for Republicans to make the next move on crypto tax reform, after clearly laying out his demands for the Digital Asset PARITY Act [1]. The bipartisan bill, co-authored with Rep. Max Miller, seeks to change how the IRS treats digital assets, including staking rewards and small stablecoin purchases. Horsford has signaled he will oppose standalone Republican-led crypto tax proposals unless his amendments are included [1].

Key takeaways

• The PARITY Act proposes de minimis tax exemptions for small stablecoin transactions under $200 [1].
• The bill reframes staking rewards to address the "phantom income" phenomenon, where taxpayers owe taxes on gains that exist only on paper [1].
• Rep. Max Miller plans to introduce comprehensive cryptocurrency legislation, including a "crypto tax" bill with Horsford [3].

Crypto Tax Reform Efforts

The PARITY Act has been refined to direct the IRS to review exemptions and ensure tax parity with stock rules, with a crucial hearing scheduled for June 9 [1]. Horsford's demands focus on two areas: the treatment of validation rewards, including staking income, and closing potential loopholes around charitable deductions for digital assets [1]. The bill has evolved through numerous drafts amid congressional scrutiny on digital asset policy throughout 2025 and 2026 [1]. Rep. Max Miller has also been working on cryptocurrency legislation, aiming to resolve ongoing questions about how cryptocurrency should be taxed [3].

The Political Landscape

The Trump administration has been involved in crypto regulation, with President Trump previously calling crypto "a scam" but now deregulating it as his family becomes involved in the industry [2]. The cryptocurrency industry has spent significant amounts on lobbying and campaign donations, including $130 million to sway federal elections [3]. Rep. Miller's legislation aims to position the United States as a global leader in digital assets, driving investment and competing with China [3].

Why it Matters

The PARITY Act has taken on outsized importance as one of the few viable vehicles for digital asset reform this session, with Senate efforts on related market structure bills stalled [1]. Horsford has framed his push partly in terms of US competitiveness in the evolving digital asset landscape, noting that other jurisdictions have already moved to simplify crypto taxation [1]. The June 9 hearing will be a crucial milestone, with investors watching to see if the revised bill text includes language on validation reward taxation and charitable deduction guardrails [1].