U.S. lawmakers have revised the crypto tax bill, eliminating the $200 small-transaction exemption. The updated PARITY Act, reintroduced by Representatives Horsford and Miller, establishes a $1 cost basis for stablecoin redemptions and applies wash-sale rules to digital assets. The changes impact the crypto market by clarifying the tax treatment of staking and trading. Investors are closely monitoring the Fear & Greed Index as regulatory shifts influence market sentiment.

ChainCatcher report, according to CoinDesk, U.S. Representatives Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Regulation, Innovation, Taxation, and Revenue Act (PARITY Act), aiming to revise how the Internal Revenue Service handles cryptocurrency taxation.The bill was first released as a discussion draft in December last year and was reissued on March 26 this year for further consideration. The bill eliminates the previous $200 de minimis exemption for small transactions, stipulating that no gain or loss shall be recognized when using regulated payment stablecoins for transactions, unless the taxpayer’s cost basis in the stablecoin is less than 99% of its redemption value, and establishes a $1 deemed cost basis for exchange transactions.The bill also applies the wash sale rule to digital asset transactions and distinguishes between “passive staking” and activities such as trading. It remains unclear what the next steps for the bill will be, but industry insiders expect strong advocacy to include cryptocurrency provisions in potential tax legislation that may become law.