Skip to content
CIVIC HERALD
HR 8899 · 119th Congress · HouseIn committee

Digital Asset PARITY Act

In plain language: This bill aligns the tax treatment of cryptocurrencies and other digital assets with traditional stocks and bonds. Crypto investors would be subject to wash-sale rules that block tax deductions on assets sold at a loss and quickly repurchased, while digital asset lending and charitable donations would be treated under the same rules as securities. In addition, the Treasury Department would be directed to study tax burdens on everyday, small-dollar transactions and issue guidance on potential relief for minor consumer purchases.

Provisional: our plain-language summary, pending review.

Provisionalunreviewed: impact, provisions, stakeholders, summary
People affected—not determinable from the text provided
Fiscal magnitude—not determinable from the text provided
Reach58provisional · pending reviewrigor: heuristic llm
Your matchSign in →See how this matches your values.

Who it affects

Who it helps · who it burdens.

Who it helps

  • Digital asset lendersAllows digital asset lenders to transfer eligible digital assets under qualifying lending agreements without immediately recognizing taxable gain or loss under Section 1058.provisional
  • Digital asset traders and dealersPermits digital asset dealers and traders to elect mark-to-market accounting under Section 475 for their digital asset positions.provisional
  • Charitable donors of digital assetsExempts donations of actively traded digital assets from mandatory qualified appraisal requirements when claiming charitable contribution deductions under Section 170.provisional

Who it burdens

  • Digital asset investors and taxpayersPrevents taxpayers from deducting losses on digital asset sales if they repurchase substantially identical assets within 30 days (wash-sale rules) and requires recognizing taxable gains when hedging appreciated digital asset positions (constructive sale rules).provisional
  • Department of the TreasuryDirects the Department to issue regulatory guidance on digital asset tax relief within 180 days, adopt rules on forks and airdrops, and submit a detailed compliance and administrative feasibility report to Congress within one year.provisional

Dollar-level funding (FEC sector totals) is coming in a later phase.

What it does

The provisions, in plain language.

  1. Extends tax-free securities lending rules to eligible digital assets, ensuring lenders do not recognize taxable gain or loss on transferred digital assets under qualifying lending agreements.

    provisional

  2. Directs the Treasury Department to issue rules on how digital asset lending rules apply to blockchain forks, airdrops, and similar subsidiary value.

    provisional

  3. Applies tax wash-sale rules to digital assets, barring taxpayers from claiming tax deductions for losses if they buy back substantially identical digital assets within 30 days before or after the sale.

    provisional

  4. Allows digital asset dealers and traders to elect mark-to-market tax accounting rules for their digital asset holdings.

    provisional

  5. Applies constructive sale tax rules to digital assets, requiring taxpayers to recognize taxable gains when eliminating risk of loss on appreciated digital asset positions.

    provisional

  6. Exempts donations of actively traded digital assets from qualified appraisal requirements for charitable contribution tax deductions, while establishing reporting rules and penalties.

    provisional

  7. Directs the Treasury Department to report to Congress within one year on the tax compliance burdens of small digital asset transactions, potential de minimis gain exclusions, and international crypto-reporting standards.

    provisional

How your members of Congress line up

Loading your members of Congress…

Timeline

How it moved.

  1. May 19, 2026Referred to the House Committee on Ways and Means.
  2. May 19, 2026Introduced in House
  3. May 19, 2026Introduced in House

The original text

Read it for yourself.

Read the original text →

Sources & provenance

Congress.govrefreshed 23 days ago

Checking your session…