Bipartisan members of the U.S. House of Representatives draft a cryptocurrency tax bill, involving tax exemption for stablecoins and deferral of taxes on staking rewards

According to The Block, Congressman Max Miller (R-OH) and Steven Horsford (D-NV) are drafting a cryptocurrency tax bill called the Digital Asset PARITY Act.

The bill will provide tax benefits for certain stablecoin transactions and delay taxation on rewards for validating blockchain transactions. The legislation will exempt capital gains tax on stablecoin transactions below $200. As a compromise between the IRS's current guidance and industry demands, taxpayers will have the option to defer taxes on staking and mining rewards for five years, after which they will be taxed as ordinary income at fair market value.

The bill will extend wash sale rules (which prevent investors from selling at a loss and immediately repurchasing to claim tax credits) to digital assets and allow traders to use the mark-to-market method for accounting.