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Updated Parity Act Revises Payment Stablecoin Language, Seeks IRS Report

Updated Parity Act Revises Payment Stablecoin Language, Seeks IRS Report

A new bipartisan PARITY Act update would have Treasury consider relief for small crypto transactions and allow up to five years of tax deferral for mining and staking rewards, expanding the bill’s digital asset tax scope.

Fact Check
All core elements of the claim are directly confirmed by authoritative sources. The official House press release at horsford.house.gov confirms the bipartisan reintroduction of the PARITY Act on May 19, 2026. CoinDesk's May 20 reporting corroborates every specific provision cited in the claim: the IRS review directive for transactions under $200, regulated payment stablecoin language (no gain/loss unless cost basis is under 99% of redemption value), wash sale rules for digital assets, staking/validator earnings treatment, and safe harbor provisions for broker trading. Crypto.news provides independent secondary confirmation. The claim's description of the bill as a 'reintroduction' is accurate given prior versions in December 2025 and March 2026 documented in search results. No conflicting evidence was found.
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Summary

A bipartisan group of U.S. lawmakers introduced the PARITY Act on the 19th, with Steven Horsford and three other lawmakers backing the measure to revise digital asset tax rules. In addition to directing the Treasury Department to consider relief for small crypto transactions, the bill would allow tax deferrals of up to five years for mining and staking rewards. Earlier provisions described in the bill include a Treasury study on de minimis relief for small transactions, revised tax treatment for regulated payment stablecoins, and the application of wash sale rules to digital assets.

Terms & Concepts
  • de minimis: A tax concept for very small transactions that may qualify for simplified treatment or exemption from recognizing gains and losses.
  • Wash sale rules: Tax rules that generally disallow claiming a loss if an asset is sold and then repurchased within a restricted time period.
  • staking rewards: Crypto tokens earned by participating in a blockchain’s staking process, which helps validate network activity and secure the chain.