Tax Bill Moving on an Independent Track

“We don’t necessarily need [the] Clarity Act to move the tax bill forward,” Shea said. Tax rules can be informed by other legislation, he explained, but they often advance on a separate track. He pointed to the PARITY Act’s reliance on definitions from the previously enacted Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act (P.L. 119-27), which lets the tax measure proceed without waiting for the Clarity Act’s regulatory framework to be settled. “At least in the [PARITY Act] right now,” he said, “we’re kind of seeing that move forward independently” of the Clarity Act.

The path forward is uncertain. Shea said the House Ways and Means Committee is preparing its own digital asset tax draft for markup, though the timing, possibly after the midterm elections, and how much it would borrow from the PARITY Act remain unclear. He hoped any eventual bill would be more comprehensive than the PARITY Act’s roughly half-dozen provisions and would track the wider set of issues, including decentralized finance (DeFi), raised in a recent White House report.

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