Us lawmakers propose new crypto tax rules, scrap $200 exemption

Main changes in the proposed bill

Originally drafted in December, the PARITY Act was re-submitted for Congressional review on March 26 with key updates to its provisions and thresholds. The revised bill addresses several important taxation aspects of digital assets.

A major highlight is the provision for “de minimis” tax exemptions on small-value transactions. These exemptions would allow crypto transactions below a certain amount to avoid tax reporting requirements and additional burdens for users.

The crypto sector has long called for such exemptions for low-volume transactions, arguing that they would enable practical daily uses like buying a cup of coffee without the need to report small crypto expenditures to tax authorities.

In the earlier 2025 draft of the bill, transactions up to $200 made using regulated payment stablecoins were eligible for these exemptions. However, the latest version removes the specific dollar figure and instead introduces defined conditions for “regulated payment stablecoin” sales.

New standards and uncertainties for crypto transactions

Under the new draft, any sale of a regulated payment stablecoin where the seller’s cost basis is less than 99% of the coin’s redemption value will remain non-taxable. This change eliminates the prior $200 cap. Furthermore, exchanges processing stablecoin transactions are now to use a $1 fixed cost basis by default.

Another major provision is the introduction of a “wash sale” rule for digital assets. Previously proposed by Senator Cynthia Lummis, this rule aims to prevent investors from claiming tax advantages by selling and rebuying crypto within short periods simply to realize losses.

The act also clarifies the distinction between passive staking activities—where investors help validate network transactions without trading—and regular trading. This clarification intends to ensure that earnings from staking are taxed appropriately, making the regime clearer for investors.

Despite these clarifications, uncertainties remain regarding how the process will move forward. Both hopes for broader tax reform and recent budget requests announced by former President Donald Trump have left the fate of the bill unsettled.

Meanwhile, recent meetings between lawmakers and industry participants signal a strong willingness to address future crypto tax rules under the framework provided by this new bill.

The draft bill states that “any sale of a regulated payment stablecoin is non-taxable if the seller’s cost basis is less than 99% of the total redemption value.”

In the latest version, the scope of the de minimis exemption is strictly limited to stablecoin transactions. Bitcoin and similar digital assets remain excluded, suggesting the exemption aims to create a more closely supervised regulatory area for stablecoins.

At present, it remains unclear how the bill will proceed through Congress or whether its provisions will be expanded to include other cryptocurrencies in the near term.