U.S. Congress Advances the Digital Asset Equality Act: $200 Stablecoins Tax-Free, Staking and Mining Tax Deferral for 5 Years

2025-12-21 00:54:14

【Chain Wen】The U.S. Congress has made new progress on cryptocurrency taxation. Representatives Max Miller (Republican from Ohio) and Steven Horsford (Democrat from Nevada) are jointly drafting the “Digital Asset PARITY Act,” which is a compromise between current IRS tax guidance and industry calls.

What are the highlights of this draft? First, stablecoin transactions under $200 will be exempt from capital gains tax. For users engaging in frequent small transactions, this can significantly reduce compliance costs. Second, staking and mining earnings can opt for a five-year tax deferral—that is, staking rewards or mining income earned now do not need to be included as taxable income at the current market price immediately, but can be deferred for five years. How is it calculated after five years? It will be taxed as ordinary income based on the fair market value.

The bill also involves two important details. One is extending the wash sale rule to digital assets—that rule was originally designed to prevent investors from selling at a loss and immediately repurchasing to claim tax credits; now, digital assets will also have to comply with this rule. The second is allowing traders to use mark-to-market accounting, which can make tax reporting more flexible.

From an industry perspective, if this bill passes, it means U.S. regulators are beginning to recognize the reasonableness of taxing digital assets. Although not entirely favorable, the overall direction is to reduce the tax burden on individual investors and holders, especially for small transactions and long-term holders. Of course, whether it ultimately becomes law depends on the progress in Congress.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

17 Likes

Reward
17
7
Repost
Share

Comment

0/400

failed_dev_successful_ape

· 12-21 01:22

Tax exemption below $200? Haha, that’s a bit more comfortable, but the big hit still comes after 5 years and I’ll have to make up the difference then. --- Finally, someone is getting serious. Much better than those empty words before. --- Deferring tax on staking for five years sounds good, but if the price is calculated at fair value after five years... what if the coin’s price skyrockets then? It would be a huge loss. --- I like the tax exemption for small transactions, just worried there might be some tricks later on. --- If this bill really passes, I might need to seriously organize my accounts. --- A joint effort by the Republican and Democratic parties? Oh my, now that’s big news. --- Deferring tax for five years is a bit pointless... if the coin’s price drops after five years, I actually make a profit; if it rises, I’m screwed. The gamble is too big. --- $200 is a bit low as a limit. Stablecoin transactions often exceed that amount daily.

View OriginalReply0

LiquidityWizard

· 12-21 01:22

Tax exemption for stablecoins under $200? Now small retail investors can finally breathe a sigh of relief, no need to meticulously calculate every transaction. Pledging tax deferral for five years sounds good, but I'm worried the tax rate might increase again after five years... by then, it might actually be a loss. These two lawmakers are actually doing something practical; finally, someone is listening to the voices of on-chain workers. Taxation based on fair value after five years—how much tax can be saved depends on the coin price trend, there's a bit of a gamble involved. The tax exemption limit of $200 is still too low; big investors don't care, but small investors find it barely enough.

View OriginalReply0

AirdropGrandpa

· 12-21 01:21

Tax exemption on $200? Ha, that's nothing for retail investors. The real big players don't care at all. Staying tax-deferred for five years sounds good, but I'm just worried that new rules will come out after five years. I've seen through the tax authorities' tricks long ago. These two lawmakers finally did something, although it might not pass... You know how Congress works.

View OriginalReply0

MysteryBoxOpener

· 12-21 01:18

Tax exemption on $200? Haha, really daring to think about it. With such a limit, it's barely a drop in the bucket. 延税五年 sounds good, but I'm worried that if the coin's price drops after five years, you'll still have to pay taxes at the high price. This needs to be calculated carefully. Feels like another political show by the lawmakers. The real implementation might be years away. There's some movement on the US side. When can we also have some tax-friendly policies? Tax-free stablecoin trading? Then I need to research how to keep trading volume below 200. Cross-party cooperation on this shows that crypto has truly entered the mainstream view. Interesting. As for deferral of staking mining taxes, it depends on how the IRS actually enforces it. Promises on paper still have a gap. Wait, how will the fair market value be determined five years from now? We'll probably have to argue with the IRS again.

View OriginalReply0

ETH_Maxi_Taxi

· 12-21 01:17

Under $200 stablecoins are tax-free? Haha, this is still somewhat interesting for small investors. Deferring taxes for five years sounds good, but you'll still have to pay after five years, it's just a delaying tactic. It's surprising that the Republican and Democratic parties can reach a consensus on this matter, not easy. Staking rewards deferred for five years... what if the coin price crashes within those five years? Will it still be calculated at the price from five years ago? After all this, you still can't escape the IRS's grasp; the real winners are always the government. Feels like the fundamental problem still hasn't been solved; the accounting is still too complicated. This move doesn't really help big players; the threshold is too low.

View OriginalReply0

WagmiOrRekt

· 12-21 01:09

Under $200 tax-free? Small investors can finally breathe a sigh of relief haha --- Deferring taxes for five years? I just want to know what happens if the coin price drops by then, will it still be based on the price from five years ago? --- It's indeed rare for both parties to team up on this, indicating that the voices in the community are really growing louder --- I’m optimistic about tax exemption for stablecoins, but calculating mining profits together after five years still feels a bit tricky --- Wait, is this really happening or are they just going to argue about it for a while? --- Lower compliance costs are a good thing, better than being chased by the IRS --- Calculating ordinary income based on market price after five years... but what if the coin price multiplies tenfold within five years? That would be a huge loss --- Finally, someone is speaking up for us, much more reliable than those messy proposals before --- Tax exemption for small transactions sounds great, but don’t cause any more trouble later --- This bill feels more like a political show; the real tax policy will depend on how the IRS enforces it

View OriginalReply0

staking_gramps

· 12-21 00:57

Haha, finally someone can listen to our voices. It's quite rare to see bipartisan cooperation on this matter. Tax deferral for five years? Honestly, it's a bit of a gimmick. When the time comes to settle accounts, it might hurt even more. Tax exemption under 200 yuan sounds great, but how much can you really save? If this bill really passes, the mining community should be able to breathe a sigh of relief. Otherwise, constantly worrying about tax reporting is truly annoying. Pledge income deferred for five years... I wonder if this is helping or digging a hole for ourselves? Reducing compliance costs is a good thing, but this is just the first step. The subsequent regulation will be the real highlight.

View OriginalReply0

Trending TopicsView More
#2025GateYearEndSummary
42.34K Popularity
#CryptoMarketMildlyRebounds
3.25K Popularity
#GoldPrintsNewATH
2.44K Popularity
#BOJRateHikesBackontheTable
1.08K Popularity
#2026CryptoOutlook
1K Popularity

Hot Gate FunView More

1
QQQQ
MC:$3.64KHolders:2
0.14%
2
蹦迪蹦迪
MC:$3.57KHolders:1
0.00%
3
DogdDogd
MC:$3.57KHolders:1
0.00%
4
07860786
MC:$3.6KHolders:3
0.14%
5
wlwife less
MC:$3.54KHolders:1
0.00%

Sitemap