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HR8899

Is The Bill "Digital Asset PARITY Act" Crypto Friendly?

Description:

This legislation establishes a comprehensive federal tax framework for digital assets, introducing key exemptions and tax-alignment rules. Notably, it excludes qualified stablecoin transactions from capital gains taxation, permits validators and miners to defer income tax on block rewards until sale, and allows digital asset investment trusts to stake assets without losing their tax status. Additionally, it extends securities lending tax treatment and trading safe harbors to digital assets, while standardizing tax compliance by applying wash-sale and constructive-sale rules to the asset class.

Date Introduced:

2026-05-19

Status:

Introduced and Sponsored

Stance on Crypto:

Somewhat Pro-Crypto

Links:

  • https://www.congress.gov/119/bills/hr8899/BILLS-119hr8899ih.pdf
  • https://www.congress.gov/bill/119th-congress/house-bill/8899
  • https://www.govtrack.us/congress/bills/119/hr8899

Primary Commentary:
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This bill is highly favorable for the crypto industry as it resolves several long-standing tax bottlenecks that have historically hindered adoption and innovation. The exclusion of capital gains taxes on stablecoin transactions represents a major win, effectively enabling stablecoins to function as a viable medium of exchange for everyday payments without burdensome tracking requirements. Furthermore, allowing miners and validators to elect to defer tax liabilities on newly created tokens until they are sold addresses a major industry pain point, preventing forced liquidations to cover tax bills on illiquid assets. The bill also supports the institutional market by allowing digital asset investment trusts, such as spot ETFs, to stake their holdings and manage protocol upgrades without losing their passive investment trust status. This could significantly boost yield opportunities for retail and institutional investors alike. While the bill introduces compliance measures by extending wash-sale and constructive-sale rules to digital assets—eliminating tax-loss harvesting advantages unique to crypto—these changes represent a standard regulatory normalization that brings the sector into parity with traditional equities. By delivering critical regulatory and tax clarity, facilitating staking in investment products, and removing transaction barriers for stablecoins, this legislation strongly supports the growth and integration of the digital asset ecosystem.

Congress members who support this bill

Sponsors

Profile picture of Max Miller
Max Miller

Cosponsors

Democrats

Profile picture of Steven Horsford
Steven Horsford
Profile picture of Suzan DelBene
Suzan DelBene

Republicans

Profile picture of Mike Carey
Mike Carey

Additional Commentary

No additional commentary for this bill yet