The U.S. House Ways and Means Committee released seven discussion drafts on June 4, 2026, targeting the tax treatment of digital assets across stablecoins, staking, mining, DeFi lending, wash sales, charitable donations, and voluntary disclosure. A full committee legislative hearing is scheduled ...
"Today, even the smallest crypto transaction can trigger tax calculation." — Rep. Steven Horsford (D-NV), Co-sponsor of the PARITY Act
The U.S. House Ways and Means Committee released seven discussion drafts on June 4, 2026, targeting the tax treatment of digital assets across stablecoins, staking, mining, DeFi lending, wash sales, charitable donations, and voluntary disclosure. A full committee legislative hearing is scheduled for June 9, 2026, at 2:00 PM ET, chaired by Rep. Jason Smith (R-MO). The proposals collectively represent the most comprehensive congressional attempt to date to codify crypto taxation rules in the U.S. Internal Revenue Code.
The stakes are material. Approximately 67–70 million Americans now hold digital assets, according to the National Cryptocurrency Association and Security.org surveys published in May 2026. The IRS began issuing Form 1099-DA for 2025 transactions in early 2026, with cost basis reporting set to take effect for 2026 transactions. The Infrastructure Investment and Jobs Act of 2021 estimated a $28 billion crypto tax gap over 10 years. These seven drafts are designed to close portions of that gap while reducing compliance friction that currently penalizes routine transactions.
The Ways and Means Committee circulated seven standalone legislative texts on June 4, 2026, each addressing a distinct area of digital asset taxation. These are discussion drafts — preliminary proposals intended to frame debate before formal markup. The named drafts include:
Less Tax Paperwork for Digital Asset Owners Act — Targets de minimis transaction relief. Aims to eliminate tax reporting requirements for small-value personal crypto payments. The PARITY Act version sets this at $200 for stablecoin payments; the Senate version proposes $300 per transaction with a $5,000 annual cap.
Tax Clarity for Mining and Staking Act — Addresses the "phantom income" problem. Under current IRS rules, mining and staking rewards are taxable as ordinary income at fair market value upon receipt, even if the holder never sells. This draft would allow validators to defer income recognition until disposal, with a deferral window of up to five years under the PARITY Act framework. Proof-of-work miners do not qualify for the deferral under the current text.
Providing Analogous Rules for Digital Assets (PAR) Act — Extends existing securities tax rules to crypto. Specifically: wash sale rules under IRC §1091 (imposing a 30-day holding period before claiming tax losses on repurchased assets), constructive sale rules under IRC §1259, securities-lending treatment under IRC §1058, and mark-to-market elections under IRC §475 for dealers and active traders.
DeFi Lending Treatment — Proposes applying bona fide loan classification to crypto lending, removing the current ambiguity under which DeFi lending can be classified as a taxable sale. This aligns crypto lending with traditional securities lending rules.
Stablecoin Payment Safe Harbor — Creates a deemed-basis rule for GENIUS Act-compliant payment stablecoins. Stablecoin transactions would not trigger gain or loss recognition unless the acquirer's basis deviates by more than 1% from the $1 redemption value. Effectively treats regulated stablecoins like cash for tax purposes.
Charitable Donations Reform — Eliminates the qualified appraisal requirement for digital asset donations to charity. Under current rules, donors of non-cash property exceeding $5,000 must obtain a qualified appraisal, which creates friction for crypto donations where fair market value is readily observable on public blockchains.
Voluntary Disclosure Program — Creates a structured pathway for taxpayers with previously unreported crypto income to come into compliance, mirroring historical IRS programs for offshore account holders.
The Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (PARITY) Act, formally H.R. 8899, serves as the anchor bill. Co-sponsored by Rep. Max Miller (R-OH) and Rep. Steven Horsford (D-NV), it was introduced on May 19, 2026, building on a revised discussion draft from March 26, 2026.
Core provisions:
The PARITY Act does not reclassify digital assets. They remain property for federal tax purposes. It also does not address cross-border source rules or jurisdictional questions.
Senator Cynthia Lummis (R-WY) introduced S. 2207, which runs parallel to the House effort. Key differences from the PARITY Act:
| Provision | PARITY Act (House) | S. 2207 (Senate) | |---|---|---| | De minimis threshold | Study only | $300/transaction, $5,000/year cap | | Staking deferral | Up to 5 years | Until sale (no cap) | | Stablecoin threshold | 1% deviation from $1 | $200 stablecoin payment threshold | | Formal tax code definition | No | Yes — creates "digital asset" definition |
The June 9 hearing is expected to begin clarifying whether the House moves toward PARITY Act markup or incorporates elements from the Lummis bill into a broader vehicle.
The legislative push occurs against the backdrop of the IRS's phased Form 1099-DA rollout:
Implementation has not been smooth. Major exchanges including Coinbase and Kraken reported delays in issuing 1099-DA forms, with some taxpayers notified that forms would not be available until March 18, 2026, or later. The basis gap remains a structural problem: brokers generally cannot report cost basis for assets acquired before 2025 or transferred from external wallets. If a user transfers Bitcoin from a hardware wallet to an exchange and sells, the exchange may report a $0 cost basis to the IRS, potentially triggering automated audit flags.
Tom Shea, EY Americas Crypto and Digital Asset Tax Leader, stated that the industry needs "at least 18 months" for brokers to build compliant reporting systems. Shea also noted that the PARITY Act "can move forward independently" of the broader Digital Asset Market Clarity Act (H.R. 3633), which the Senate Banking Committee advanced 15–9 on May 14.
Revenue projections remain preliminary. One estimate cited by industry sources places the 10-year revenue impact of the full package at approximately $600 million (2025–2034). This figure is modest relative to the $28 billion gap identified in the 2021 Infrastructure Act, suggesting that the current legislative package prioritizes compliance simplification over revenue maximization.
The wash sale provision is expected to generate the most revenue by closing the tax-loss harvesting loophole. Under current rules, a crypto holder can sell at a loss, immediately repurchase the same asset, and claim the tax deduction — a strategy prohibited for securities since the 1930s.
Alison Mangiero, head of the Crypto Council for Innovation, stated: "Getting the tax treatment of digital assets right is essential to compliance, to everyday use, and to keeping this activity and its revenue in the United States."
Cody Carbone of the Digital Chamber said the organization welcomes the hearing as an opportunity "to refine these proposals and keep the bipartisan tax effort moving forward."
Bitcoin advocacy organizations have objected to mining-related clauses in the legislation, though specific objections have not been detailed publicly.
The bipartisan co-sponsorship of the PARITY Act is notable. Tax legislation in the current Congress has generally followed partisan lines on most issues, making the Miller-Horsford collaboration an exception.
The June 9 hearing is a committee hearing, not a markup. No vote is scheduled. The legislative pathway forward depends on several factors:
The seven discussion drafts represent the most granular congressional effort to date to address crypto taxation. The approach — breaking the problem into standalone proposals rather than a single omnibus bill — reflects the committee's intent to identify which provisions can attract bipartisan support. The June 9 hearing will function as a filtering mechanism. The staking deferral and stablecoin safe harbor provisions have clear bipartisan backing. Wash sale rules are likely to face less opposition given their alignment with existing securities law. The mining tax provisions and DeFi lending treatment remain contested.
Whether these drafts reach markup before midterm elections is uncertain. What is clear is that the IRS enforcement apparatus — Form 1099-DA, automated matching, penalty structures — is advancing regardless of legislative action. The legislative effort is an attempt to ensure the tax code keeps pace with enforcement capabilities, not the other way around.