Horsford Introduces Bipartisan PARITY Act to Modernize Digital Asset Rules and Close the Wealth Gap

May 19, 2026 Press Release WASHINGTON D.C. – Congressman Steven Horsford (NV-04), Max Miller (OH-07), Suzan DelBene (WA-01), and Mike Carey (OH-15) today introduced bipartisan legislation The Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (PARITY) Ac t, which will bring much needed clarity, consistency, and common-sense guardrails to the taxation of digital asset activities. The PARITY Act creates a durable framework to address outdated and inconsistent tax rules surrounding digital assets, while ensuring innovation can continue responsibly. Specifically, the legislation focuses on creating administrable standards, preventing abuse, protecting consumers and investors, and ensuring the digital asset economy operates with transparency and accountability. “As digital assets continue to grow and evolve, Washington cannot afford to stay stuck in the past,” said Rep. Horsford. “Right now, the lack of clear rules creates uncertainty for consumers, investors, businesses, and regulators while leaving the system game-able for wealthy and sophisticated players. The PARITY Act establishes clear, durable, and administrable standards that strengthen investor protections, provide certainty to markets, and put strong guardrails in place to prevent abuse and manipulation. Innovation should not come at the expense of accountability or fairness. With clear rules of the road, everyday people not just large corporations and the ultra-wealthy can safely participate in these emerging technologies, build wealth, and help close the wealth gap.” “As America continues to lead the world in innovation, our tax code has failed to keep pace with the rapid growth of digital assets and modern financial technology,” said Congressman Miller. “The PARITY Act brings greater clarity, fairness, and common sense to the taxation of digital assets by modernizing outdated policies and creating a more workable framework for consumers, investors, and innovators alike. By establishing a more balanced and predictable tax framework, this legislation is a first step in fostering innovation here at home while ensuring the United States remains competitive in the global digital economy.” The Digital Asset PARITY Act would: Create a deemed-basis rule for regulated, dollar-pegged payment stablecoins to treat digital dollars used like cash as cash—reducing IRS administrability burdens and provide consumer-relief in routine transactions, and preventing misuse by trading or arbitrage activity. Provide clear tax certainty for foreign investors trading on U.S. digital asset platforms. Extend established securities-lending tax principles to qualifying digital asset loans. Apply significant anti-abuse provisions to digital assets that are already required for other similar activities, like wash-sale rules and constructive sales rules. Align the tax treatment of professional digital asset dealers and active traders with existing securities markets by permitting a mark-to-market election. Resolve the “phantom income” problem for miners and stakers by providing a clear, administrable election for when digital assets rewards are taxed. Modernize charitable contribution rules for digital assets. Clarify that passive, protocol-level staking by investment funds is not a trade or business. Full legislative text of the Digital Asset PARITY Act is available here. A Section-by-Section of the Digital Asset PARITY Act is available here. A one-page explainer of the Digital Asset PARITY Act is available here. ## Issues : Economy