Digital Asset PARITY Act

Stablecoin Tax Relief: For holders of regulated payment stablecoins, no gain or loss is recognized on a sale or exchange unless the taxpayer's basis is less than 99 percent of the redemption value (Section 2).

Trading Safe Harbor: Provides a safe harbor for trading in traded digital assets through resident brokers, commission agents, or custodians (Section 3).

Validation Activity Deferral: Allows taxpayers involved in validation activities to elect to defer the inclusion of income and capitalize expenses (Section 8).

Passive Staking Clarification: Establishes that passive staking does not constitute a trade or business (Section 10).

Consumer Relief Study: Directs a study to determine how to provide relief for low-value digital asset transactions to reduce undue compliance burdens (Section 12).

Basis Limitations for Stablecoins: In an exchange of a regulated payment stablecoin, the acquirer's basis is deemed to be $1 (Section 2).

Transaction Costs: Amounts paid to facilitate the sale or exchange of a regulated payment stablecoin cannot be included in the calculation of the basis (Section 2).

Lending Income: Payments made to a lender in lieu of staking rewards or other distributions must be included in the lender's gross income (Section 4).

Wash Sale Rules: Applies wash sale rules to "specified assets," which includes digital assets (Section 5).

Charitable Contribution Restrictions: For contributions of non-actively traded digital assets exceeding $500, a deduction is not allowed unless a specific contemporaneous written acknowledgment is provided (Section 9).

Penalty for Fraudulent Acknowledgment: Donee organizations may face penalties for knowingly providing false or fraudulent acknowledgments regarding digital asset donations (Section 9).