Crypto tax relief bill asks IRS to review small payments

A bipartisan House bill would direct the Treasury Department to review small crypto transaction tax relief and issue interim guidance.

U.S. Representatives Steven Horsford, Max Miller, Suzan DelBene, and Mike Carey introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields Act on May 19. The bill is called the PARITY Act.

The bill seeks clearer tax rules for digital assets. Horsford’s office said the proposal focuses on standards that can be administered, consumer protection, abuse controls, and clearer rules for investors and businesses.

Horsford said “Washington cannot afford to stay stuck in the past” as digital assets grow. He said unclear rules create uncertainty for consumers, investors, companies, and regulators.

Small crypto payments remain under review

The latest bill does not directly create a tax exemption for all small crypto transactions. Instead, it would direct the Treasury Department, which oversees the IRS, to study a de minimis exemption and explain what relief it can provide under current authority.

That review would cover the reporting burden from low-value transactions. It would also assess how many crypto transactions under $200 are reported to the IRS and what systems the agency would need if Congress later creates a small-payment exemption.

Related coverage has shown why the issue matters to exchanges and users. Kraken said it filed 56 million crypto tax forms for 2025, with most forms covering transactions under $50.

Stablecoins and staking receive tax focus

The PARITY Act also includes a deemed-basis rule for regulated dollar-pegged payment stablecoins. Horsford’s office said this would treat digital dollars used like cash as cash for tax purposes, while adding controls against trading and arbitrage misuse.

The bill also keeps provisions covering staking, mining, digital asset loans, professional traders, and wash-sale rules. Horsford’s office said the proposal would address the “phantom income” issue for miners and stakers by creating an election for when rewards are taxed.

Separate related coverage said 18 bipartisan lawmakers had already asked the IRS to review its 2023 staking guidance before the 2026 tax year. That report said the PARITY Act would allow taxpayers to defer recognition of staking and mining rewards.

Congress keeps crypto rules active

The bill comes as Congress reviews several digital asset measures. Bloomberg Tax reported that digital asset tax writers finalized the bill as crypto policy gained momentum in Washington.

The tax push also sits beside broader market-structure talks. Related coverage said the Senate Banking Committee advanced the CLARITY Act in a 15-9 vote, moving a wider crypto oversight bill closer to a Senate floor vote.

Coinbase also spent $1.07 million on lobbying in the first quarter of 2026, with filings covering digital asset tax treatment, the CLARITY Act, and stablecoin rules.