The bipartisan proposal would grant tax benefits exclusively to payments in stablecoins under $200.
According to Bloomberg, two U.S. lawmakers have introduced a draft bill—still under discussion—that would provide a limited tax exemption for stablecoin payments in the United States.
The proposal, called the Digital Asset PARITY Act, was introduced by Republican Max Miller of Ohio and Democrat Steven Horsford of Nevada. Both serve on the House Ways and Means Committee, which oversees federal tax legislation.
At the core of the draft is an exemption from capital gains taxes for certain low-value stablecoin transactions. Under the proposal, purchases made with regulated, dollar-pegged stablecoins valued at less than $200 would no longer be considered taxable events.
The stated goal is to eliminate the administrative burden associated with routine payments, where even minimal price fluctuations currently require users to calculate gains or losses.
The exemption would take effect for tax years beginning after December 31, 2025. Miller said he believes broader legislation could advance before August 2026.
Stablecoin requirements
Not all stablecoins would qualify for the exemption. To be eligible, stablecoins would need to be issued by an authorized issuer under the GENIUS Act, be backed exclusively by the U.S. dollar, and have maintained a value within 1% of $1 for at least 95% of trading days over the past year.
The proposal appears at least somewhat curious, given that it excludes cryptocurrencies such as bitcoin and ether and follows a series of summits and meetings attended by the very same major stablecoin issuers. First came the GENIUS Act, which establishes who can issue “approved” stablecoins, and now this draft bill that would specifically benefit those same stablecoins.
Lawmakers are still considering whether to introduce an annual cap to prevent the provision from being used to shield investment activity rather than consumer payments.
Staking and mining: a five-year deferred tax exemption
Beyond stablecoins, the draft also clarifies when staking and mining rewards should be taxed. Current IRS guidance treats such rewards as taxable income at the time they are received—a position that has drawn criticism from industry advocates and some Republican lawmakers.
The Miller-Horsford proposal adopts a middle-ground approach: taxpayers could opt for a five-year deferral on staking and mining rewards. At the end of that period, the rewards would be taxed as ordinary income based on their market value. The authors of the draft describe this system as a compromise between immediate taxation and full deferral until sale.
