Horsford Presses GOP on Crypto Tax Changes Sought in Digital Asset PARITY Act

Rep. Steven Horsford (D-NV) says Republicans have his crypto tax conditions in plain view and that he's now waiting for the GOP to respond. The dispute is tied to the Digital Asset PARITY Act, a bipartisan measure he co-wrote with Rep. Max Miller (R-OH) to reshape how the IRS taxes digital assets, from staking-related income to everyday stablecoin use. Horsford has indicated he will resist standalone, Republican-led crypto tax bills unless they fold in his changes covering validation rewards and tighter limits on charitable deduction practices involving digital assets. What the PARITY Act would change The bill would create a de minimis exemption for stablecoin transactions under $200. Current tax rules can require a capital gains calculation on each transaction, even for trivial amounts. It also addresses what critics call "phantom income" in staking. Today, the IRS generally treats staking rewards as taxable income upon receipt. The legislation would reframe that treatment for staking rewards by focusing on the timing and characterization of those rewards. Beyond that, the proposal aims to bring digital asset tax rules closer to those used for traditional financial instruments, including areas such as wash-sale treatment and charitable contributions. The political timetable An initial draft dated December 20, 2025 focused on the small-transaction exemption. By May 2026, revisions were aimed at directing the IRS to evaluate the exemption framework and apply tax parity concepts similar to stock rules. The bill has moved through multiple iterations as Congress has intensified scrutiny of digital asset policy across 2025 and 2026. Horsford is pushing his amendments in House Ways and Means Committee discussions, with a key hearing set for June 9 viewed as the next major deadline. His demands center on two points: (1) taxation of validation rewards, a broader category that includes staking income, and (2) closing potential loopholes tied to charitable deductions for digital assets, where donors could potentially arbitrage the difference between cost basis and market value in ways not available for traditional securities. Why markets are watching Senate work on related market structure legislation has bogged down, leaving the House as the more active venue for crypto policy. That has elevated the PARITY Act as one of the few realistic paths for digital asset tax reform this session. Horsford has pitched the effort as part of maintaining U.S. competitiveness, arguing other jurisdictions have already taken steps to simplify crypto taxation. Investors tracking the legislative calendar are focused on the June 9 hearing and whether updated text includes guardrails on validation reward taxation and charitable deduction rules—a key signal of whether a deal is nearing.