Stablecoin tax treatment in the U.S. is at the center of a new legislative push to exempt qualifying daily transactions involving regulated payment stablecoins from tax.
The latest version of the PARITY Act would stop gain or loss recognition on certain stablecoin sales unless a taxpayer’s basis falls below 99% of the token’s redemption value, marking a direct attempt to treat routine stablecoin spending more like cash payments. The proposal also revises rules on staking rewards and digital asset wash sales, while lawmakers in Washington continue to debate broader crypto legislation.
Stablecoin payments provision removes small transaction tax burden
The bill is grounded on the past discussion drafts issued in December 2025 and on March 26, 2026. The earlier proposal recommended a $200 limit on payments made with regulated payment stablecoins, as in the de minimis section.
That structure was altered in the March 2026 draft. Instead of using a de minimis criterion, the text states that no gain or loss would be recognized on the sale of a regulated payment stablecoin unless the taxpayer’s basis in that stablecoin is less than 99% of its redemption value.
Another standard eliminated by the draft was the previous $200 standard. In addition, it created a deemed basis of $1 for exchanges, which the text treats separately from the stablecoin’s sales. That development solves one of the long-term problems of crypto users. The current tax treatment states that any payment made using USDC or USDT can result in a taxable event, even when the change in value is minimal.
Meanwhile, the bill creates a distinction between passive staking and other activities, such as trading. It would also enable taxpayers to decide when to record staking rewards, upon receipt or after a deferral period of not more than 5 years, as indicated in the material. To qualify under the proposed stablecoin treatment, the asset must be regulated under the GENIUS Act and remain within 1% of its $1 peg.
Stablecoin debate comes alongside ongoing crypto policy pressure
The tax proposal comes following pressure on other digital asset legislation, including the CLARITY Act. Senator Cynthia Lummis recently pointed out that the bill could remain stalled until 2030 if the Senate fails to act before the 2026 election cycle.
At the same time, as reported by Cryptopolitan, the Trump White House has pushed back on concerns over stablecoin yield provisions. A Council of Economic Advisors report dated April 8 said the effect on bank lending would be limited, estimating a 0.02% increase, or about $2.1 billion.
The same report said community banks would face about $500 million in additional obligations, equal to a 0.026% increase over current lending activity. It concluded that banning yield would provide little protection for bank lending while giving up consumer benefits tied to competitive returns on stablecoin holdings.
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Source: https://www.cryptopolitan.com/stablecoin-bill-targets-tax-free-in-u-s/