US lawmakers have introduced the PARITY Act as Congress expands its work on digital asset tax rules. The bill comes as lawmakers continue talks on crypto market structure, investor protection, and clearer rules for digital assets. It also arrives while the industry watches the CLARITY Act, which remains central to broader crypto regulation in Washington.
Representatives Steven Horsford, Max Miller, Suzan DelBene, and Mike Carey introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields Act. The bill seeks to update US tax rules for digital assets and create clearer standards for investors, companies, and markets.
House Ways and Means Committee Chairman Jason Smith said crypto tax legislation needs support from both parties. “It needs to be bipartisan or I have no desire to move it,” Smith told reporters when asked about a possible digital asset tax bill. His comment shows the challenge facing crypto tax policy in Congress.
According to reports, the PARITY Act aims to strengthen investor protection, provide market certainty, and reduce abuse and manipulation. It also seeks to help ordinary citizens join digital asset markets under clearer tax rules.
Representative Steven Horsford said the bill would create standards that support fairness and accountability. “Innovation should not come at the expense of accountability or fairness,” Horsford said. He added that clear rules could help everyday people join emerging technologies and build wealth.
Representative Max Miller said the current tax code has not kept pace with digital assets and modern financial technology. “As America continues to lead the world in innovation, our tax code has failed to keep pace with the rapid growth of digital assets and modern financial technology,” Miller said.
The bill comes after Congress released a tax policy discussion draft in March. Lawmakers later held a bipartisan roundtable in May to discuss the structure of a crypto asset tax framework. Those steps show that tax policy has become a separate but related part of the wider digital asset debate.
Meanwhile, the Ways and Means Committee has increased its focus on crypto tax rules. The work continues as Senate attention remains on the CLARITY Act, which deals with crypto market structure. Together, both efforts reflect a wider attempt to set federal rules for the sector.
The PARITY Act focuses on tax treatment, while the CLARITY Act focuses on regulatory oversight. As a result, lawmakers are now working on more than one path for digital asset policy. Each bill addresses a different part of the market.
The crypto industry is watching whether the CLARITY Act can pass in 2026. Even if the bill reaches the Senate calendar, it would need 60 votes to move closer to the president’s desk. That requirement keeps bipartisan support at the center of the process.
The PARITY Act adds another item to the congressional agenda. However, supporters say tax rules remain necessary as digital assets move further into payments, trading, and decentralized finance. Clearer tax standards could also help investors understand reporting duties and reduce uncertainty.
Additionally, rulemaking tied to the GENIUS Act remains part of the broader policy picture. If Congress advances tax, market structure, and stablecoin rules together, federal agencies would have a wider base for crypto oversight.
For now, lawmakers continue negotiations on both tax policy and market rules. Horsford and Miller have said talks remain on track, with passage by the end of the year still viewed as possible. However, Jason Smith’s statement keeps one condition clear: crypto tax legislation must remain bipartisan to move forward.
Also Read: What is the CLARITY Act: Will the US Bill End Crypto’s Regulatory Chaos?