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Horsford Bets on PARITY Act for Staking Tax Relief
Horsford wants staking tax exemptions and small-transaction relief in the Digital Asset PARITY Act. A June 9 Ways and Means hearing will test whether Republicans meet his demands.
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Rep. Steven Horsford says Republicans know what he wants on crypto taxes. The Nevada Democrat is waiting for them to make the next move.
The standoff runs through the Digital Asset PARITY Act, a bipartisan bill Horsford co-authored with Rep. Max Miller (R-OH). It would exempt small stablecoin transactions under $200 from capital-gains reporting, reframe how staking rewards are taxed, and close a charitable-deduction loophole for digital assets. Horsford has signaled he will oppose any standalone Republican-led crypto tax bill unless his amendments on validation rewards and charitable-deduction guardrails are included.
His two demands are specific. First, the treatment of staking income: the IRS currently taxes rewards the moment they hit a wallet, creating what critics call phantom income. The PARITY Act would push taxation to the point of sale. Second, preventing donors from exploiting the gap between cost basis and market value on crypto donations, a trick that is harder to pull off with stocks.