The latest round of cryptocurrency tax reform in the US Congress will instruct the IRS to review the tax exemption for small transactions

On May 21, according to CoinDesk, bipartisan lawmakers in the United States on Wednesday reintroduced a revised cryptocurrency tax bill, the Digital Asset Protection, Regulation, Innovation, Taxation, and Revenue Act, or PARITY Act. If signed into law, the bill would direct the IRS to examine the potential impact of de minimis exemptions. The new version stipulates that "regulated stablecoins" would not generate gains or losses if their cost basis is not less than 99% of their redemption value; the bill creates a safe harbor for transactions conducted through brokers or taxpayer accounts; it defines how digital asset "wash sale" rules apply; and clarifies the tax treatment of digital assets acquired through staking by validators. Additionally, the bill requires the IRS to review the tax burden on small digital asset transactions, assess how many transactions under $200 are covered by existing laws, and study the feasibility and potential risks of abuse of de minimis exemptions. Representative Horsford stated that tax law is fundamental, and current federal tax law is outdated and does not account for the modernization of digital assets.