Lawmakers introduce Digital Asset Tax Bill With Stablecoin Safe Harbor Rules

TLDR

Table of Contents

Stablecoin transactions under $200 exempt from capital gains under proposed bill.
Staking and mining rewards can be deferred up to five years before taxation.
Draft bill applies wash sale rules and mark-to-market accounting to crypto.
Digital Asset PARITY Act clarifies taxable events for loans and large crypto gifts.

A new draft tax bill targeting digital assets could reshape taxation for stablecoins and staking rewards. Bipartisan lawmakers in the House introduced provisions that aim to simplify reporting for small stablecoin transactions while allowing optional deferral for staking and mining rewards. The proposal also extends existing tax rules to cryptocurrencies, providing clarity for traders and investors in the evolving digital asset market. Lawmakers emphasized balancing innovation with practical tax compliance.

Safe Harbor for Small Stablecoin Transactions

The Digital Asset PARITY Act, introduced by Rep. Max Miller (R-Ohio) and Rep. Steven Horsford (D-Nev.), proposes a tax exemption for regulated stablecoins. Transactions under $200 would not incur capital gains taxes, easing compliance for daily purchases. Rep. Horsford said, “Even the smallest crypto transaction can trigger tax calculation while other areas lack clarity and invite abuse.”

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Tired of crypto taxes killing your vibe? Reps. Miller & Horsford's proposal could change that:
Stablecoin Perk: No capital gains tax on transactions under $200 (if USD-pegged & regulated) — eliminating tiny tax headaches! 💸… pic.twitter.com/QlN1RvIvVX
— CryptosRus (@CryptosR_Us) December 21, 2025

Stablecoins must meet specific criteria to qualify. They must be issued by permitted entities under the GENIUS Act, pegged solely to the U.S. dollar, and maintain a price within 1% of $1.00 for most trading days in the prior year. Brokers and dealers would be excluded. Lawmakers are also evaluating whether to add an annual aggregate cap to prevent the provision from sheltering investment gains. This measure seeks to ensure the exemption applies only to everyday consumer use rather than large-scale trading.

Staking and Mining Rewards Deferral

The draft also addresses taxation of staking and mining rewards, which has been debated in Washington for years. Current IRS guidance taxes rewards as income when received. The new framework would allow a five-year deferral option for taxpayers, after which rewards would be taxed at fair market value.

The bill describes the provision as “a necessary compromise between immediate taxation upon dominion and full deferral until disposition.” This approach aims to provide flexibility while maintaining accountability. Taxpayers could now plan staking and mining activities with a clearer understanding of timing for taxation. Lawmakers said the deferral is intended to encourage broader participation in blockchain networks while avoiding sudden tax burdens.

Extension of Existing Tax Rules to Crypto

The draft bill applies wash sale and constructive sale rules to cryptocurrencies, limiting strategies to generate tax benefits from rapid transactions. It also clarifies that loans of qualifying digital assets will not trigger taxable events, though non-fungible and illiquid tokens are excluded.

Professional traders may elect mark-to-market accounting, and charitable donations of large-cap digital assets would not require appraisals. The legislation specifies that protocol-level staking by funds does not constitute a trade or business, helping investment managers comply with tax rules without complex filings. Lawmakers noted that the framework aims to standardize reporting while reducing confusion across digital asset activities.

Legislative Outlook and Market Impact

The stablecoin safe harbor would take effect for taxable years beginning after December 31, 2025. Lawmakers aim to move the broader bill through committee by August 2026. Horsford’s spokesperson said, “The hope is that the committee will work together in good faith to set these critical rules of the road.”

The Digital Asset PARITY Act reflects ongoing efforts to create consistent tax treatment for crypto participants. It balances daily usage, staking incentives, and traditional tax frameworks to reduce uncertainty. Investors and market participants will monitor developments closely as the bill progresses, evaluating how exemptions and deferrals could influence behavior in digital asset markets.