The PARITY Act would eliminate capital gains taxes on regulated stablecoin payments

Sellers of regulated stablecoin payments would recognize no gain or loss under the new draft of the Digital Asset PARITY Act. The bipartisan proposal, led by Representatives Steven Horsford and Max Miller, would treat routine spending with dollar-pegged stablecoins as non-taxable events. To qualify, a stablecoin must be issued by an authorized entity and maintain its peg within 1% for at least 95% of trading days over the prior 12 months. The bill would deem the taxpayer's basis to be $1 per unit, ignoring fluctuations within a $0.99 to $1.01 band. This shift would align regulated payment stablecoins with foreign currency rules. Current IRS guidance classifies stablecoins as digital assets taxed as property, meaning every use of USDC or USDT to buy goods triggers a reportable capital gain or loss event.