Rep. Steven Horsford (D-NV) says he’s laid out his crypto tax demands clearly enough that Republicans understand what he wants. Now he’s waiting for them to make the next move.

The standoff centers on the Digital Asset PARITY Act, a bipartisan bill Horsford co-authored with Rep. Max Miller (R-OH) that would overhaul how the IRS treats everything from staking rewards to small stablecoin purchases. Horsford has signaled he’ll oppose standalone Republican-led crypto tax proposals unless his amendments on validation rewards and charitable deduction loopholes are included.

What the PARITY Act actually does

The bill proposes de minimis tax exemptions for small stablecoin transactions under $200. Under current rules, every single transaction technically triggers a capital gains calculation, no matter how small.

When you stake crypto and receive rewards, the IRS currently treats those rewards as taxable income the moment you receive them. The PARITY Act reframes staking rewards to address this “phantom income” phenomenon, where you owe taxes on gains that exist only on paper.

The legislation also seeks to align digital asset rules more closely with those governing traditional financial instruments, covering areas like wash sales and charitable contributions.

The political chess match

The bill was first drafted on December 20, 2025, targeting those small transaction exemptions. By May 2026, it had been refined to direct the IRS to review the exemptions and ensure tax parity with stock rules. The legislation has evolved through numerous drafts amid congressional scrutiny on digital asset policy throughout 2025 and 2026.

Horsford is actively pushing his amendments during ongoing discussions in the House Ways and Means Committee, with a crucial hearing scheduled for June 9 serving as the next major deadline.

His specific demands focus on two areas. First, the treatment of validation rewards, which is the broader category that includes staking income. Second, closing potential loopholes around charitable deductions for digital assets, where donors could theoretically exploit the gap between cost basis and market value in ways that aren’t possible with traditional securities.

Why this matters beyond Capitol Hill

Senate efforts on related market structure bills have stalled, making the House the more active arena for crypto regulation. That shift in focus means the PARITY Act has taken on outsized importance as one of the few viable vehicles for digital asset reform this session.

Horsford has framed his push partly in terms of US competitiveness in the evolving digital asset landscape, noting that other jurisdictions have already moved to simplify crypto taxation.

The June 9 hearing will be the next concrete milestone. Investors watching the legislative calendar should pay attention to whether the revised bill text includes language on validation reward taxation and charitable deduction guardrails, as those two provisions will signal whether a deal is actually close.