Tax rules for crypto traders would mirror existing stock market law

What does this do?

HR 9176, the PAR Act, updates the federal tax code to apply existing stock and bond tax rules to actively traded digital assets that meet certain size requirements. It clarifies rules for digital asset lending so lenders do not trigger a taxable event simply by lending out holdings. The bill also allows professional crypto dealers and traders to use mark-to-market accounting, reporting gains and losses based on year-end values rather than only at the point of sale.

Who does it affect?

Professional traders, investment dealers, and businesses working with cryptocurrency and other digital assets are most directly affected. Foreign investors trading digital assets in the United States for their own accounts are also covered under the bill's provisions.

Why does it matter?

Current tax rules for digital assets are unclear or missing, creating uncertainty for those who trade or lend them professionally. Applying familiar stock and commodity rules to digital assets could change how gains, losses, and lending arrangements are reported across the industry.

Where does it stand?