U.S. Representative Steven Horsford said crypto tax policy should become the foundation of America’s digital asset framework, warning that broader market-structure legislation will leave major gaps if Congress does not clarify how digital assets are treated under the federal tax code.
Speaking at Consensus Miami 2026 on Tuesday, Horsford said the U.S. has made progress after the GENIUS Act became law and the CLARITY Act moved through the House. However, he said the Senate process remains unfinished, with negotiations around the CLARITY Act still unresolved.
“We passed last year the GENIUS Act, which I was pleased to vote in favor of in the House,” Horsford said. “The CLARITY Act, which is the regulatory framework bill, is still working its way through the Senate.”
The GENIUS Act was signed into law on July 18, 2025, creating a federal regulatory framework for payment stablecoins.
Horsford Says CLARITY Act Talks Are Not Done
Horsford said he supported the CLARITY Act in the House, but stressed that the Senate version still matters because legislative details could determine whether the final law works for consumers, builders and institutions.
“I have supported that legislation in the House. It matters how it gets done in the Senate,” Horsford said. “We’re waiting, quite frankly, on the legislation.”
He pointed to efforts by Senator Thom Tillis and Senator Angela Alsobrooks to reach a compromise, but said even that process now appears delayed.
“I’m pleased that Senator Tillis and Senator Alsobrooks have tried to reach a negotiation, but it seems like even that negotiation is on hold,” Horsford said.
The remarks come after Tillis and Alsobrooks reached a compromise over stablecoin rewards in the CLARITY Act, a key dispute between banks and crypto firms. Recent reports said the compromise would restrict stablecoin rewards that resemble bank deposit interest while allowing certain activity-based rewards.
PARITY Act Framed as Crypto Tax Foundation
Horsford argued that tax policy should not be treated as the third leg of U.S. crypto legislation after GENIUS and CLARITY. Instead, he said tax rules should be viewed as the base layer for digital asset adoption.
“I actually think tax is the foundation,” Horsford said. “Why? Because it’s tax policy that will determine how these digital assets can be used in our finance system.”
Horsford is working with Republican Representative Max Miller on the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields Act, or PARITY Act. The official discussion draft was unveiled by Horsford and Miller in December 2025 to modernize federal tax treatment for digital asset activity.
The lawmakers said the draft targets compliance burdens, anti-abuse gaps and tax rules that do not clearly fit digital asset transactions.
“None of the current regulatory policy framework tells a consumer, an institution, or a builder what happens to their taxes when they sell a digital asset, earn staking reward, lend crypto on the U.S. platform, or make a charitable contribution in Bitcoin,” Horsford said. “Those are tax questions, and they remain entirely unresolved.”
Bill Targets Stablecoins, Lending, Wash Sales and Staking
The PARITY Act discussion draft includes a de minimis gain or loss provision for regulated payment stablecoins, covering sales or exchanges of qualifying dollar-pegged stablecoins within a narrow range around $1.
The draft also proposes tax treatment for digital asset lending agreements, extends wash sale rules to specified assets including digital assets, and includes a technical section on staking and mining elections.
Horsford said the bill is not meant to resolve every crypto tax issue immediately, but to create a durable framework before the market expands further.
“What we can’t do is allow what happened back in 1986 when Congress left the tax treatment of derivatives unresolved,” Horsford said. “You want that clarity, you want that predictability, you want that certainty in the law.”
IRS Readiness Becomes a Central Concern
Horsford also questioned whether the Internal Revenue Service is prepared to handle the scale and complexity of digital asset reporting.
“How many of you believe that the IRS is well-positioned now to manage what is coming and what is already here in the digital asset space?” he asked. “None of us, and that’s the reality.”
He said the lack of crypto-specific tax clarity is already creating pressure during tax season, with digital asset users receiving forms that the agency may not have the staffing or technical capacity to properly process.
“There are tens of thousands of forms that are being sent out to users of digital assets that the IRS honestly can’t even manage,” Horsford said. “There’s not adequate staff.”
Horsford said the PARITY Act would give Treasury and regulators a clearer congressional mandate while leaving room for future technical improvements.
Crypto Framed as Wealth Gap Issue
Horsford framed his support for crypto legislation around economic access, saying digital assets could help communities outside traditional venture capital and banking networks build ownership and opportunity.
“Digital assets, crypto, and Bitcoin have an opportunity to so transform our economic future that this is literally the level playing field,” he said.
He added that his interest in crypto came from constituents who pressed him at town halls about Bitcoin and digital assets.
“I didn’t know much about crypto, digital assets, or Bitcoin,” Horsford said. “It was my constituents showing up at town halls asking me what my position was.”
The Nevada Democrat urged crypto users and companies to stay engaged with lawmakers as Congress continues debating tax, stablecoin and market-structure legislation.
“This stuff isn’t done yet,” Horsford said. “We all need to stay engaged, we need to stay informed.”
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