Digital Asset PARITY Act: How New Legislation Reshapes Mining, Staking, and Trading Taxes

Washington just dropped a regulatory bombshell—and crypto miners, stakers, and traders might finally catch a break.

Tax Clarity Lands

The freshly introduced Digital Asset PARITY Act slices through years of regulatory fog. It carves out clear tax treatment for mining rewards, staking yields, and trading gains—no more guessing games at tax time.

Mining Gets Its Due

For proof-of-work validators, the bill recognizes mined coins as newly created property. That means taxable events trigger upon sale or exchange, not at the moment of block creation. It’s a logistical win that keeps operations fluid.

Staking Rewards, Simplified

Stakers, breathe easy. The act treats your earned rewards as income only when you gain control and dispose of them. It bypasses the current headache of paying tax on assets you can’t even access or sell yet.

Trading Gains, Defined

Traders get a long-awaited framework. The legislation draws clear lines between capital gains and ordinary income, aligning crypto more closely with traditional securities. Finally, a rulebook that doesn’t feel written in another language.

The Bottom Line

This isn’t just policy—it’s a potential catalyst. By removing punitive tax uncertainty, the U.S. could stop pushing innovation offshore. Of course, watching D.C. try to ‘fix’ finance is like watching a toddler operate a Bloomberg Terminal—you hope for the best but expect a mess. The act now faces the real test: surviving committee debates and political posturing to become law.

US lawmakers are taking a more practical approach to crypto regulation with the introduction of the Digital Asset PARITY Act. Supported by Representatives Max Miller and Steven Horsford, the bipartisan proposal aims to simplify the taxation of digital assets, addressing a long-standing confusion that has affected traders, investors, and everyday users.

Instead of introducing broad new restrictions, the bill targets specific weaknesses in the current tax system, which was never designed for blockchain-based assets. Its goal is to reduce friction while making enforcement and reporting more consistent.

Aligning Crypto With Traditional Financial Rules

The PARITY Act aims to align digital asset taxation with the rules governing stocks, commodities, and securities. Lawmakers argue this approach will give market participants clearer expectations and eliminate gray areas that have caused uncertainty and inconsistent reporting.

By updating the IRS code, the bill seeks to make crypto taxes easier to understand, especially for individuals and businesses that regularly deal with digital assets.

Everyday Stablecoin Use Gets Easier

A key feature of the bill is its treatment of payment stablecoins. It introduces a de minimis exemption for regulated, dollar-pegged stablecoins used in small transactions. This means people could spend stablecoins for routine purchases without triggering capital gains reporting every time.

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The bill also clarifies income rules for foreign investors using US-based crypto platforms, giving more certainty for cross-border transactions.

Clearer Rules for Traders and Dealers

For professional traders, the bill tightens rules but also provides clarity. It applies wash sale and constructive sale rules to actively traded digital assets, closing loopholes that allowed aggressive tax strategies.

At the same time, eligible traders and dealers could use mark-to-market accounting, putting crypto trading on similar terms as traditional securities markets. The bill also offers non-taxable treatment for qualifying digital asset lending arrangements that function like real loans rather than asset sales.

Addressing Mining and Staking Taxes

The bill tackles the issue of phantom income for miners and stakers. Taxpayers could choose to defer taxes on rewards until a clearly defined event. When taxed, these rewards WOULD be treated as ordinary income with a set cost basis for future gains.

Industry Reaction

Crypto analyst Mason Blak C calls the proposal a clear sign that lawmakers are addressing real tax challenges. He says the bill reduces friction for users, provides clearer rules for developers, and limits opportunities for tax abuse.

Though still a draft, the Digital Asset PARITY Act represents a meaningful step toward fairer, clearer, and more practical crypto tax rules in the US.

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FAQs

The Digital Asset PARITY Act is a bipartisan US proposal to simplify crypto taxation and align it with traditional financial rules.

Yes, it clarifies trading rules, applies wash sale rules, and allows mark-to-market accounting for eligible traders.

Yes, it clarifies income rules for foreign investors using US platforms, making cross-border transactions more predictable.