US Lawmakers Propose Tax Breaks for Small Stablecoin Payments and Staking Rewards

Representatives Max Miller and Steven Horsford introduced the Digital Asset PARITY Act on December 20, 2025, aiming to simplify tax treatment for small stablecoin transactions and staking rewards. The bipartisan bill exempts stablecoin payments under $200 from capital gains taxes, provided the stablecoin meets stringent criteria under the GENIUS Act—including a 1% price stability band against the dollar.

Crypto miners and stakers WOULD gain flexibility to defer tax on rewards for up to five years, addressing a key pain point for blockchain participants. The proposal targets everyday adoption by eliminating tax-tracking burdens for minor purchases like coffee or groceries—currently a barrier under IRS rules.

Lawmakers are debating whether to impose annual caps to prevent exploitation. "America's tax code has failed to keep pace with digital asset innovation," said Representative Miller, framing the bill as necessary for competitiveness.