US Bill Simplifies Crypto Tax Rules for Miners

US lawmakers have introduced the Digital Asset PARITY Act, a bill designed to simplify cryptocurrency taxation and bring it closer to traditional market rules. The proposal focuses on long-standing pain points for traders, miners, and stakers, while also addressing gaps in how stablecoins are treated under current US tax law.The Digital Asset PARITY Act clarifies income rules for foreign investors using US-based crypto platforms, reducing uncertainty around cross-border transactions.

For professional traders, the bill applies wash sale and constructive sale rules to actively traded digital assets, aligning crypto activity with securities markets. Eligible traders and dealers would also be allowed to use mark-to-market accounting, providing clearer and more predictable tax treatment.For miners and stakers, the legislation targets the issue of phantom income. Instead of taxing rewards at the moment they are created, the Act allows taxation to be deferred until a clearly defined taxable event occurs. When taxed, these rewards would be treated as ordinary income with an established cost basis for future capital gains calculations.

The bill also introduces non-taxable treatment for qualifying digital asset lending arrangements that function as genuine loans rather than disguised asset sales. This provision aims to reduce friction for legitimate lending activity while limiting opportunities for tax abuse.

According to crypto analyst Mason Blak C, the proposal reflects a shift toward addressing practical tax challenges rather than imposing broad or punitive measures. The Act is positioned as a targeted response to a tax framework that was never designed to accommodate stablecoins, decentralized finance, or modern crypto trading behavior.

The timeline for the bill’s progression through Congress, potential amendments, and final implementation remains uncertain. Key details, including how mark-to-market accounting would be operationalized for crypto traders, are expected to be clarified during the legislative process.

If passed, the Digital Asset PARITY Act could represent a meaningful step toward clearer, fairer, and more workable crypto tax rules in the United States. The crypto industry will be closely watching how the proposal evolves, given its potential impact on compliance, reporting, and everyday participation in digital asset markets.

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