A recently revised crypto tax bill largely retains and expounds upon earlier proposals, while deviating on the taxation of mining rewards and dollar-pegged stablecoins.

On March 26, 2026, Congressmen Steven Horsford (D-NV) and Max Miller (R-OH) introduced a revised draft of the bipartisan crypto tax bill (the “Parity Act”). The revised draft builds on the crypto tax proposals in the earlier draft, which we previously discussed here. 

Two significant differences from the earlier draft include:

Election To Defer Staking (But Not Mining) Rewards

Certain passive stakers could elect to defer income from staking rewards, rather than recognize income upon receipt, which is the current IRS position. If electing taxpayers dispose of the staking rewards before the end of a five-year elective period, they would generally include the amount realized on the staking rewards, less certain capitalized transaction costs, on the date of disposition as ordinary income. If the taxpayer holds the staking rewards for longer than five years, then the taxpayer could continue to defer its staking reward income and, upon a future disposition, then any gain, including the portion attributable to the five-year elective period, or loss would be long-term capital gain or loss, respectively. 

Notably, unlike the earlier draft, cryptocurrency mining rewards are not eligible for deferral. As a result, taxpayers who validate proof-of-stake cryptocurrencies like Ethereum could elect to defer income from their rewards, whereas, taxpayers who validate proof-of-work cryptocurrencies like Bitcoin could not.

Stablecoin Basis Rule Replaces De Minimis Exception

Gain or loss on sales of “regulated payment stablecoins” pegged to the U.S. dollar would not be recognized if the transferor’s basis in the stablecoin is 99% or greater than the redemption value, which is generally a dollar. Effectively, taxpayers could exchange stablecoins with a 99-cent basis for items worth one dollar without recognizing or reporting gain. The earlier draft would have excluded gain or loss on “regulated payment stablecoin” transactions up to $200. Additionally, under a deemed basis rule, acquirers of “dollar pegged stablecoins” would receive a one dollar basis in each acquired stablecoin.

In recent years, the crypto industry has requested, and various bills have proposed, a de minimis exception from gain recognition for individuals purchasing goods or services with cryptocurrency. Notably, the stablecoin exception in the Parity Act would not defer or exempt any gain or loss recognized on other cryptocurrencies such as Bitcoin, even on a de minimis basis.

The revised draft appears much closer to completion, suggesting that a near-final version of the Parity Act could be introduced in the House later this year. We will continue to monitor the Parity Act in future editions of BrassTax.