US Congress Proposes PARITY Act to Close Crypto Tax Loopholes

U.S. Representatives Steven Horsford and Max Miller have introduced a bipartisan discussion draft for the Digital Asset PARITY Act to enhance market regulation. The proposed legislation seeks to standardize the tax treatment of digital assets by aligning them with traditional securities frameworks. A central provision involves amending Section 1091 of the tax code to eliminate the 'wash sale' loophole, preventing crypto investors from claiming tax losses on immediate repurchases. Conversely, the bill aims to provide favorable tax treatment or exemptions for regulated stablecoins to encourage their integration into the financial system. Analysts view this move as having a mixed impact, increasing tax liabilities for active traders while fostering institutional adoption. This legislative development is expected to directly affect major assets including BTC, USDC, and USDT, as well as crypto-linked equities like COIN.