Rep. Steven Horsford, a Nevada Democrat, told attendees at CoinDesk's Consensus Miami conference Tuesday that his bipartisan PARITY Act represents an incremental path forward for crypto taxation in a Congress where comprehensive Senate market-structure negotiations have stalled.

Market Context

The cryptocurrency industry continues to await regulatory clarity from Washington as multiple legislative proposals compete for attention on Capitol Hill. While the CLARITY Act has stalled in the Senate, with negotiations between Senators Thom Tillis and Angela Alsobrooks appearing to be "on hold," smaller targeted bills like PARITY have gained traction among lawmakers seeking bipartisan compromise.

Analysis

"PARITY is designed to set a durable floor, not to be the last word," Horsford told moderator Professor Yesha Yadav during a panel discussion. He emphasized that existing problems need resolution "clearly within the tax code's jurisdiction in order to have protection for the consumer, small businesses, and those who are owners of these assets to define whether it gets treated as income or capital gains."

The Nevada Democrat expressed preference for a narrow approach over comprehensive alternatives, including Sen. Cynthia Lummis's proposal. "The risk of a comprehensive bill," Horsford said, "is that it pairs genuinely helpful provisions with definitional language that is so broad that it creates other problems."

On retirement account access—a notable omission in current PARITY drafts—Horsford indicated personal support for inclusion. "In order to close the wealth gap, we have to be able to help people plan for their retirement. Digital assets are a way to do that," he said, noting bipartisan appetite exists but cautioning against rushing language without proper vetting.

Key Numbers

- December 2025: PARITY Act discussion draft co-authored by Reps. Horsford and Max Miller (R-Ohio)

- March 26, 2026: Latest revision to the PARITY Act discussion draft

- Five years: Proposed tax-deferral election period for staking and mining rewards under PARITY

What to Watch

Market participants should monitor whether Senate CLARITY Act negotiations resume before November midterm elections. Horsford declined to commit to a timeline, stating: "It's less about a timeline and more about getting it right." The evolution of stablecoin-payments cost-basis provisions and potential inclusion of retirement account language in future PARITY drafts will be key developments for traders and crypto investors assessing tax treatment clarity.