The Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields Act (Digital Asset PARITY Act; HR 8899) was introduced in the U.S. House of Representatives on May 19, 2026. Many tax commentators feel this bill is the most likely legislative vehicle to address many of the outstanding issues involving the taxation of digital assets.
Key provisions of the bill include:
- Treating regulated dollar-pegged stablecoins like digital dollars rather than property. This would mean that most taxpayers will no longer have to track the stablecoin’s basis. This provision would not apply dealers or traders in stablecoin;
- Clarifying source-of-income rules for digital asset trading;
- Extending existing securities-lending tax rules to qualified digital assets, which means that digital asset lending would not be treated as a taxable sale;
- Applying wash-sale and constructive-sale rules to digital assets;
- Allowing mark-to-market elections for digital asset traders and dealers;
- Creating an elective framework for staking and mining rewards, which would treat rewards as income while allowing deferral of taxation to address liquidity and phantom income concerns;
- Modernizing charitable contribution rules, which would distinguish between highly liquid digital assets and speculative or illiquid tokens to prevent abuse while supporting legitimate charitable giving; and
- Directing the U.S. Treasury Department to study a viable de minimis threshold that would exempt small digital asset transactions from reporting requirements.
A summary of the bill is available at: https://d12t4t5x3vyizu.cloudfront.net/maxmiller.house.gov/uploads/2026/05/Digital-PARITY-One-pager.pdf
