Bitcoin Black Sheep, Stablecoin Favorite Child Under Revised Crypto Bill

A recently revised crypto tax bill largely retains and expounds upon earlier proposals, while deviating on the taxation of mining rewards and dollar-pegged stablecoins.

On March 26, 2026, Congressmen Steven Horsford (D-NV) and Max Miller (R-OH) introduced a revised draft of the bipartisan crypto tax bill (the “Parity Act”). The revised draft builds on the crypto tax proposals in the earlier draft, which we previously discussed here. 

Two significant differences from the earlier draft include:

Election To Defer Staking (But Not Mining) Rewards

Certain passive stakers could elect to defer income from staking rewards, rather than recognize income upon receipt, which is the current IRS position. If electing taxpayers dispose of the staking rewards before the end of a five-year elective period, they would generally include the amount realized on the staking rewards, less certain capitalized transaction costs, on the date of disposition as ordinary income. If the taxpayer holds the