New US Crypto Tax Bill Gives Stablecoins a Free Pass Bitcoin Holders Are Fuming

Two bipartisan House members, Republican Max Miller of Ohio and Democrat Steven Horsford of Nevada, released a discussion draft titled the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields Act, or the “Digital Asset PARITY Act.” Despite the name, critics say this bill is anything but fair.The draft introduces a de minimis exemption for stablecoin transactions under $200, meaning small payments would not trigger capital gains taxes or reporting requirements. It also clarifies that dollar-pegged stablecoins will not incur gains as long as their value remains within 1% of $1.Think of it this way. Spending $5 on a latte using a stablecoin would no longer trigger a taxable event. That is a meaningful change for anyone using crypto in everyday life.To qualify for the safe harbour, stablecoins must be issued under the GENIUS Act, be pegged solely to the US dollar, and have maintained a price within 1% of $1.00 for at least 95% of trading days in the prior 12 months.The bill also addresses staking. Staking and mining rewards would receive a five-year tax deferral option, a compromise between current IRS guidance and industry demands. The bill further extends wash sale rules to digital assets and allows mark-to-market accounting for active traders.The problem is the name. PARITY implies equal treatment. There is no mention of any tax exemption for Bitcoin, the largest cryptocurrency by market capitalisation. That omission has sparked backlash from Bitcoin advocates who say the proposal creates an uneven playing field.A person who buys a cup of coffee with Bitcoin still faces a capital gains calculation. A de minimis exemption for everyday Bitcoin transactions is necessary for the digital asset’s maturation as it grows into a global medium of exchange. That was the view of the Bitcoin Policy Institute, which issued a strongly worded response shortly after the draft dropped.The Bitcoin Policy Institute also faulted the bill’s staking language, which benefits so-called passive validators. The definition structurally excludes Bitcoin miners, who by the nature of proof-of-work, incur high costs for electricity, hardware, and infrastructure.It creates a two-tier tax regime, offering deferral to stakers while leaving miners facing the same phantom income problem that both parties had already acknowledged needed fixing.Pierre Rochard, CEO of The Bitcoin Bond Company, put it bluntly. “It’s Bitcoin that should have a de minimis tax exemption. Stablecoins are not decentralised, and they are not permissionless. They’re not real money; they’re just fiat.”

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