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A bipartisan discussion draft circulated by House Ways and Means Committee members Rep. Max Miller (R-OH) and Rep. Steven Horsford (D-NV) introduces a targeted tax safe harbor for certain stablecoin transactions, aiming to reduce compliance burdens for everyday crypto payments.
Released on December 20, the proposal—part of a broader Digital Asset PARITY Act framework—would exempt capital gains taxes on transactions involving regulated, USD-pegged stablecoins valued under $200. To qualify, stablecoins must be issued under the GENIUS Act, pegged solely to the dollar, and maintain pricing within 1% of $1 for at least 95% of the prior year’s trading days. The exemption focuses on consumer use, excluding brokers, dealers, and non-stablecoin cryptos; lawmakers are considering annual caps to prevent abuse.
The safe harbor, effective for tax years after December 31, 2025, addresses ambiguities hindering stablecoin adoption in payments and DeFi. The draft also offers a five-year tax deferral option for staking/mining rewards, extends wash-sale rules to digital assets, and allows mark-to-market accounting for traders.
Industry advocates praise the move for aligning tax treatment with practical use, potentially boosting adoption and institutional confidence. However, it’s a discussion draft seeking committee input, not yet a formal bill.
This initiative signals growing congressional momentum for crypto tax clarity amid evolving regulations.
