Bipartisan PARITY bill could accelerate mass adoption of cryptocurrencies through tax clarity

The document aims to eliminate long-standing tax barriers that have hindered the everyday use of digital assets by both private users and investors for many years.

A key element of the initiative is the exemption from capital gains tax on transactions with stablecoins up to $200, provided that the transaction is a regulated stablecoin. This measure is designed to remove excessive tax and reporting burdens from ordinary payments and make the use of stablecoins more convenient for everyday commerce. Importantly, this «safe window» applies only to stablecoins pegged to the US dollar and subject to regulation under initiatives such as the GENIUS Act. Thus, the bill focuses on transparency and stability, rather than creating loopholes for tax optimization.

Equally important is the provision for a voluntary deferral of taxation of staking and mining rewards for up to five years. This opens up the possibility for institutional participants to reinvest the income received without immediately incurring tax liabilities. In the current IRS model, staking rewards are taxed as ordinary income at the time of receipt, which creates the problem of so-called «phantom income» — tax on assets that have not yet been realized. The deferral mechanism provided for in the PARITY Act brings the tax regime closer to economic reality by allowing such income to be taxed later, based on its fair market value after the deferral period ends.

Together, these changes have the potential to significantly lower barriers for retail users while simultaneously creating the conditions for deeper institutional capital involvement. Simplifying the everyday use of stablecoins and increasing the tax efficiency of staking and mining could stimulate growth in on-chain activity, broaden participation in decentralized finance protocols, and make cryptocurrencies a more practical tool in everyday economic life.
As regulatory certainty increases in the digital asset space, such tax incentives could attract new capital, support liquidity, and accelerate the integration of crypto technologies into the traditional financial system.

Read the country’s main IT news in our Telegram

On the topic

Read the country’s main IT news in our Telegram