Millions of U.S. cryptocurrency users have operated under a patchwork of ambiguous IRS guidance, creating a heavy compliance burden on everyday digital asset transactions. On June 5, 2026, the U.S. House Ways and Means Committee began circulating seven draft cryptocurrency tax bills aimed at establishing a definitive regulatory framework. A formal hearing on the drafts is scheduled for June 9.
The proposed legislation targets major industry pain points, specifically aiming to provide tax relief for “de minimis” small transactions. The framework establishes rules for stablecoin activity and mitigates the double-taxation burden currently placed on digital asset mining and staking proceeds.
The Bipartisan PARITY Act Provisions
The legislative effort is anchored by the bipartisan PARITY Act (H.R. 8899), co-authored by Representatives Steven Horsford (D-NV) and Max Miller (R-OH). The bills propose a “deemed-basis rule” that treats regulated, dollar-pegged stablecoins like cash, sparing consumers from tracking micro-gains on everyday purchases.
The drafts also offer an election for miners and stakers to defer ordinary income recognition on rewards for up to five years. This provision is designed to avoid “phantom income” issues, where individuals are taxed on digital assets before they are sold for fiat currency.
House Ways and Means Chairman Jason Smith (R-MO) prioritized establishing this tax framework independently of the broader market-structure legislation known as the Clarity Act (H.R. 3633), which faces slower progress in the Senate. The tax bills are positioned to advance on their own, according to an analysis by EY regarding the committee’s timeline.
How the Wash Sale Expansion and IRC § 1058 Shift Market Compliance
The proposed drafts formally extend existing securities regulations to the cryptocurrency sector. This includes applying the wash sale rule under IRC § 1091 to close the “fake-loss loophole,” confirming the bipartisan PARITY Act framework. The legislation also enforces the constructive sale rule (IRC § 1259).
By expanding securities-lending treatment under IRC § 1058, the legislation dictates that lending a digital asset is not taxed as an immediate sale. Digital Chamber CEO Cody Carbone publicly welcomed the drafts, noting that the industry’s appetite to comply is high but hindered by currently unclear rules.
This tax framework operates independently but borrows definitions from the previously enacted GENIUS Act. It follows previous attempts by Senator Cynthia Lummis (R-WY) to attach similar digital asset tax provisions to spending packages last year.