At the Consensus Miami conference, Congressman Steven Horsford emphasized the importance of incremental reform in cryptocurrency legislation, particularly as Senate negotiations on the CLARITY Act have stalled. He highlighted his bipartisan PARITY Act as a pragmatic approach to address existing issues within the sector.
Horsford stated, “PARITY is designed to set a durable floor, not to be the last word,” indicating that the legislation aims to create a foundational framework rather than a comprehensive solution. He underscored the need for clarity within the tax code to protect consumers, small businesses, and asset owners regarding the classification of digital assets as income or capital gains.
Co-authored with Republican Representative Max Miller of Ohio, the PARITY Act was initially drafted in December and revised in March. Horsford expressed a preference for a focused approach over broader alternatives, such as Senator Cynthia Lummis’s proposal. He cautioned that comprehensive bills could inadvertently complicate matters by combining beneficial provisions with overly broad definitions.
The key components of the PARITY Act include a cost-basis test for stablecoin payments, a five-year tax-deferral option for staking and mining rewards, and an extension of wash-sale rules to digital assets. Although the current drafts do not address retirement account access, Horsford indicated that he sees value in including this aspect to help close the wealth gap through digital asset investment.
On the current legislative landscape, Horsford noted that discussions regarding the CLARITY Act, led by Senators Thom Tillis and Angela Alsobrooks, appear to be stagnant. He refrained from predicting whether bipartisan crypto legislation could be enacted before the upcoming midterm elections, stating, “It’s less about a timeline and more about getting it right.” He warned against rushing legislation that could lead to unintended consequences.
Ripple CEO Brad Garlinghouse also weighed in on the situation, asserting that the success of the CLARITY Act hinges on the scheduling of a Senate Banking Committee hearing within the next two weeks. He remarked that the bill’s future is uncertain as bank lobbyists continue to delay progress.
Congressman Steven Horsford advocates for incremental reform in cryptocurrency legislation through his bipartisan PARITY Act, emphasizing the need for clarity in tax regulations. As Senate negotiations on the CLARITY Act stall, he warns against rushing legislation that may lead to unintended consequences.