Congressional Bill Targets Crypto Tax Reforms and IRS Review of De Minimis Exemption

On May 20, 2026, a bipartisan coalition of lawmakers reintroduced the Parity Act, a bill designed to reform crypto taxation in the United States. The new iteration of the legislation includes language that would require the Internal Revenue Service (IRS) to study the impact of de minimis exemptions on small transactions involving cryptocurrencies.

Notable sponsors of the bill include Representatives Steven Horsford (D-NV), Max Miller (R-OH), Suzan DelBene (D-WA), and Mike Carey (R-OH). This move comes after recent discussions among lawmakers about the necessity of updating the tax code to better accommodate the use of digital assets.

The Parity Act proposes that "regulated payment stablecoins" should only recognize capital gains or losses on transactions if the cost basis is less than 99% of the redemption value of the stablecoin. Additionally, the bill aims to introduce a safe harbor for trading through brokers and arrangements among taxpayer accounts. It also attempts to clarify how existing "wash sale" rules apply to digital assets and how assets accumulated as staking rewards should be treated for tax purposes.

The proposed IRS review aims to assess the level of taxation imposed on small digital assets transactions, specifically focusing on transactions valued under $200. A key aspect of this review will be the examination of whether a de minimis exemption could alleviate the tax filing burden for such transactions, which proponents argue would facilitate more widespread use of cryptocurrencies for everyday purchases, like coffee.

Representative Horsford emphasized the importance of tax policy in shaping the practical use of digital assets within the financial system, stating, "I actually think tax is the foundation. Why? Because it’s tax policy that will determine how these digital assets can be used in our finance system." He lamented that the current federal tax code does not adequately address the realities of digital assets and their usage in transactions and investments.

The reintroduction of the Parity Act is viewed as a preliminary step toward comprehensive tax reform for cryptocurrencies, targeting loopholes and ambiguities that have long confused users and regulators alike.