Rep. Steven Horsford Proposes 'PARITY Act' for Crypto Tax Reform: "Will Establish Reasonable Taxation Standards"

On May 5, 2026, Representative Steven Horsford (D-NV) proposed the 'Digital Asset PARITY Act' as a 'durable floor' for cryptocurrency taxation at the Consensus Miami event. The bill aims to facilitate compliance with Internal Revenue Service (IRS) regulations without hindering innovation in cryptocurrency technology.

Currently, negotiations in the U.S. Senate regarding the 'CLARITY Act,' which covers overall cryptocurrency regulation, remain at a standstill. In this context, this bipartisan bill co-sponsored by Horsford and Representative Max Miller (R-OH) is gaining attention as a practical and immediate tax reform proposal.

The core of the PARITY Act lies in improving the current unreasonable structure that requires complex tax calculations every time a routine, small-scale cryptocurrency transaction occurs. Representative Horsford pointed out that the current system acts as a barrier to the real-life application of innovative financial technologies.

This announcement comes at a time of increasing confusion for investors and the industry due to new IRS reporting requirements implemented starting in 2025. In particular, the massive reporting obligations imposed on cryptocurrency exchanges and brokers following the introduction of Form 1099-DA have emerged as a major market issue.

Representative Horsford emphasized the need for incremental and bipartisan reform during a conversation with Professor Yesha Yadav on the Consensus Miami stage. He explained that for cryptocurrency to grow as a significant pillar of the economy, clear guidelines that protect taxpayers while accommodating technological advancement are essential.

Emerging technologies like cryptocurrency need safeguards that allow for innovation while maintaining the integrity of the tax system. Currently, even the smallest transactions are subject to tax reporting, placing an excessive burden on users.

This bill, a collaboration between Representatives Max Miller and Steven Horsford, has undergone continuous revision and refinement since the initial discussion draft was released in December 2025. Both representatives sought to reflect in the bill that cryptocurrency functions not only as an asset but also as a means of payment.

Contrast with 2025 IRS Reporting Requirements

Under regulations that took effect on January 1, 2025, cryptocurrency brokers, including Coinbase, must report gross proceeds for all user sales and exchange transactions. Investors must use this information to complete Form 1040 Schedule D and Form 8949; the PARITY Act includes provisions to significantly simplify these administrative procedures.

• ['December 2025: Initial introduction of the PARITY Act draft and start of bipartisan cooperation', 'March 26, 2026: Distribution of an updated discussion draft with strengthened detailed provisions', 'May 5, 2026: Announcement of the bill\'s strategic importance at Consensus Miami']

The industry expects this bill to be a breakthrough for cryptocurrency legislation. Ripple CEO Brad Garlinghouse mentioned at the conference that the next two weeks will be a critical watershed determining the direction of cryptocurrency-related legislation, calling for political decisiveness.

The PARITY Act focuses on ensuring transparency in cryptocurrency transactions and strengthening U.S. digital financial competitiveness beyond simple tax cuts. Representative Horsford predicted that if the bill passes, the tax environment after 2026 will become more user-friendly.

The key point to watch moving forward is how quickly this bill will be processed through the House Financial Services Committee and onto the floor. If the PARITY Act, which enjoys bipartisan support ahead of the 2026 midterm elections, leads to actual legislation, the U.S. cryptocurrency market is expected to enter a new period of institutional stability.