Digital Asset PARITY Act Skips Bitcoin
What to Know
- Representatives Max Miller and Steven Horsford released the Digital Asset PARITY Act as a discussion draft on Thursday, March 27, 2026
- The bill creates a $200 de minimis tax exemption for stablecoin transactions — but applies no equivalent exemption to Bitcoin (BTC)
- Stablecoins pegged within ±$0.01 of $1 would not trigger capital gains, though transaction costs can't count toward cost basis
- Pierre Rochard, CEO of The Bitcoin Bond Company, called the omission "the wrong direction" — saying Bitcoin, not stablecoins, deserves the exemption
The Digital Asset PARITY Act landed Thursday as a discussion draft from two US House members, and crypto's Bitcoin community immediately noticed what wasn't in it. Representatives Max Miller (R-OH) and Steven Horsford (D-NV) put their names on a sweeping digital asset tax overhaul — formally titled the "Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields Act" — that carves out tax relief for stablecoins while leaving Bitcoin holders to deal with the same capital gains math they've always faced.
What the Digital Asset PARITY Act Actually Proposes
The draft bill targets the Internal Revenue Code of 1986, proposing a set of updates that would bring crypto assets under a more defined tax framework. The headline provision: dollar-pegged stablecoins would not be subject to capital gains treatment if the token's cost basis doesn't fluctuate by more than ±$0.01 from its $1 peg. That's a practical acknowledgment that most stablecoin transactions — swapping USDC for another asset, for example — don't generate any real economic gain.
Beyond that, the bill establishes a stablecoin tax exemption for transactions below $200, meaning small stablecoin transfers and payments wouldn't trigger reporting requirements or tax liability at all. The total annual cap for this de minimis exemption hasn't been set yet — that's presumably one of the items open for debate in this draft stage. Crucially, transaction costs paid to acquire or move regulated dollar-pegged stablecoins can't be added to an investor's cost basis under the proposal.
Yield from lending, staking, or "passive" validator services is treated differently — it counts as gross income in the year received, valued at fair market price. That's not particularly surprising, and it aligns with how the IRS has been treating staking rewards since the Jarrett case brought renewed attention to the question a couple years back. The Digital Asset PARITY Act hasn't been formally introduced to Congress yet — Thursday's release was a discussion draft designed to pull in feedback from industry stakeholders before any floor action.
Why Is Bitcoin Left Out?
Why doesn't the Digital Asset PARITY Act include a Bitcoin de minimis tax exemption?
That's the question Bitcoiners are asking loudly. The bill's stablecoin focus makes a kind of political sense — stablecoins are where most everyday crypto payments actually happen, and there's bipartisan appetite for payment-focused legislation. But the omission of a Bitcoin de minimis tax exemption stings for those who've been pushing the idea for years.
The parallel with the CLARITY Act is hard to ignore. That broader crypto market structure bill — still pending — also doesn't include a BTC de minimis exemption. Two major pieces of crypto legislation, both without Bitcoin relief. Whether that's oversight, deliberate policy, or just the path of least political resistance depends on who you ask.
Cody Carbone, CEO of the Digital Chamber — one of Washington's more prominent crypto lobbying organizations — welcomed the draft without weighing in on the Bitcoin gap specifically.
We need digital asset tax clarity or activity will never fully onshore.
— Cody Carbone, CEO, Digital Chamber
Bitcoin Advocates Push Back Hard
Pierre Rochard, CEO of The Bitcoin Bond Company — a firm that structures BTC-denominated financial products — didn't mince words. His response to the draft landed as a direct rebuttal to the bill's framing, connecting the stablecoin focus back to broader arguments about what "real" money looks like in the digital age. The contrast he drew is worth understanding: stablecoins are centrally issued, permissioned instruments that represent claims on fiat currency. Bitcoin is the opposite — no issuer, censorship-resistant, fixed supply. The tax treatment question isn't just administrative; it reflects a philosophical argument about which of those deserves to be treated as money under US law.
The de minimis fight isn't new. Advocacy groups have pushed the idea for several cycles now — the argument being that if you buy a coffee with Bitcoin, you shouldn't owe capital gains tax on a few dollars of appreciation. The stablecoin version of that logic made it into this bill. The Bitcoin version didn't. And for holders who use BTC for actual payments — not just HODLing — the gap is real. Small transactions still require cost-basis tracking, still generate tax events, still create friction that pushes activity toward stablecoins or off-chain entirely. You can see why the stablecoin clarity push moves faster politically: it has broader industry backing and fewer ideological complications.
The discussion draft framing matters here. This isn't law — it's a conversation starter. But the terms of that conversation are already being set, and Bitcoin advocates are right to flag what's missing early. A bill that reaches markup without BTC relief is harder to amend than a draft that gets revised before formal introduction.
It's Bitcoin that should have a de minimis tax exemption. Stablecoins are not decentralized, and they are not permissionless. They're not real money; they're just fiat.
— Pierre Rochard, CEO, The Bitcoin Bond Company
What Does This Mean for Crypto Tax Policy?
The PARITY Act is one of several crypto tax proposals circulating in Washington right now, and its release follows a broader push by the industry to get some kind of legislative clarity before the next major market cycle. The fact that it's bipartisan — with a Republican and a Democrat both putting their names on it — is a signal that there's genuine appetite to move something. Whether the final version looks anything like this draft is another question entirely. What you can say with some confidence is that stablecoin tax treatment is becoming a political easy win, and Bitcoin tax treatment remains the harder fight.
For holders of BTC, the takeaway is straightforward: don't mistake stablecoin progress for crypto-wide progress. The two assets have diverging political narratives right now, and it's showing up in the legislative text. Groups like the Digital Chamber cheering any clarity is one thing. The broader Bitcoin tax relief campaign is a separate battle that doesn't appear to be gaining the same traction on Capitol Hill — at least not yet.
Frequently Asked Questions
What is the Digital Asset PARITY Act?
The Digital Asset PARITY Act is a discussion draft bill introduced by US Representatives Max Miller and Steven Horsford in March 2026. It proposes updates to the Internal Revenue Code to clarify how digital assets are taxed, including a de minimis exemption for stablecoin transactions under $200 and capital gains relief for tightly pegged dollar stablecoins.
Does the Digital Asset PARITY Act include a Bitcoin de minimis tax exemption?
No. The bill's de minimis exemption applies only to stablecoin transactions below $200. Bitcoin and other non-stablecoin digital assets are not covered by the exemption, which has drawn sharp criticism from Bitcoin advocates who argue BTC deserves equal or greater tax relief given its role as a decentralized monetary asset.
What stablecoin transactions are exempt under the proposed bill?
Under the PARITY Act draft, dollar-pegged stablecoins that don't fluctuate more than $0.01 from their $1 peg are not subject to capital gains treatment. Transactions below $200 would not trigger any tax or reporting requirements. Transaction costs incurred to acquire or move stablecoins cannot be counted toward an investor's cost basis.
Is the Digital Asset PARITY Act now law?
No. As of March 2026, the bill has been published only as a discussion draft and has not been formally introduced to Congress. The draft stage is designed to gather feedback from lawmakers, industry stakeholders, and crypto advocates before any formal legislative action is taken.
This article is for informational purposes only and does not constitute investment advice. Every investment and trading decision involves risk. Readers should conduct their own research before making any financial decisions.
Topics
Digital Asset PARITY ActBitcoin de minimis tax exemptioncrypto tax proposalstablecoin tax exemptiondigital asset taxcrypto legislation 2026Milan Torres
Senior Analyst
Milan covers Bitcoin markets, macro trends, and institutional crypto adoption with a focus on data-driven analysis.
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