Digital Asset PARITY Act

1046. Regulated payment stablecoin transactions

(a) Sale of regulated payment stablecoin

(1) In general. In the case of any sale or exchange of a regulated payment stablecoin, no gain or loss shall be recognized on such sale or exchange unless the taxpayer’s basis in such stablecoin is less than 99 percent of the redemption value of such stablecoin.

(2) Redemption value. For purposes of this subsection, the term redemption value means the dollar amount for which the issuer is obligated to redeem such stablecoin.

(b) Exchange of regulated payment stablecoin. In the case of any exchange of a regulated payment stablecoin, the acquirer’s basis in such stablecoin shall be deemed to be $1.

(c) Transaction costs not included in basis. Amounts paid or incurred to facilitate the sale or exchange of a regulated payment stablecoin shall not be included in the calculation of the basis of such stablecoin.

(d) Regulated payment stablecoin

(1) In general. For purposes of this section, the term regulated payment stablecoin means a digital asset—

(A) that is a payment stablecoin issued by a permitted payment stablecoin issuer,

(B) with respect to which the issuer is obligated to convert, redeem, or repurchase the payment stablecoin for a fixed amount of United States dollars, and

(C) which was acquired by the taxpayer for a price within 1 percent of $1.00.

(2) Definitions. The terms payment stablecoin and permitted payment stablecoin issuer have the meaning given those terms, respectively, in section 2 of the GENIUS Act (12 U.S.C. 5901).

(e) Dealers and traders. This section shall not apply to the sale or exchange of any regulated payment stablecoin by a taxpayer who is a dealer or trader in securities or commodities.

(f) Regulations and guidance. The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out this section, including to prevent the avoidance of tax under this section.

Sec. 1046. Regulated payment stablecoin transactions.