Buying coffee with Bitcoin will still be a tax headache according to this new bill proposal.

The Bitcoin Policy Institute (BPI) has taken a critical stance against the revised draft of the so-called PARITY Act, warning that its current provisions could compromise the technological competitiveness of the United States by imposing direct tax disadvantages on Bitcoin and mining activity.

The organization formally expressed its opposition to the recent draft of the Digital Asset Parity ActThe proposal, presented on March 26, was described in a detailed statement by the organization as a setback that, in its current form, poses a threat to the technological leadership the United States seeks to consolidate in the digital asset industry. 

Although the BIS acknowledged the openness to dialogue on the part of the legislators, it emphasized that the document "It's moving in the wrong direction." by establishing an unequal competitive framework.

Bitcoin is excluded from the exemption for everyday payments

One of the pillars of review The BIS's focus lies in managing de minimis tax relief. The current draft proposes an exemption of up to $200 for transactions made with payment stablecoins, but explicitly excludes Bitcoin. According to the organization, this technical decision has profound implications for the everyday use of the largest cryptocurrency by market capitalization, which represents approximately 60% of the sector's total market capitalization.

From the institute's perspective, this distinction prevents Bitcoin from maturing as a global medium of exchange. Under the proposed rules, any U.S. citizen using Bitcoin to purchase basic goods, such as a cup of coffee, would still be subject to the same restrictions. subject to a complex calculation of capital gains for each transactionThe BPI argues that legislation that aims to promote "parity" must necessarily include Bitcoin in these exemptions so as not to penalize users who choose decentralized assets instead of digital representations of fiat currencies.

Furthermore, the organization argues that exclusively favoring stablecoins creates a environment of "winners and losers" artificially designed by the legal framework. By not granting the same exemption treatment for small purchases, the adoption of Bitcoin as neutral money is discouraged, relegating it to an investment vehicle with operational frictions that stablecoins, often linked to large financial corporations, would not have to face.

The PARITY Law exacerbates the fiscal challenge for digital mining

The second point of contention identified by the Bitcoin Policy Institute in the draft PARITY Act is found in Section 8 of the regulatory text, which introduces a tax deferral framework for newly created digital assets. The legislation limits this benefit to so-called "passive validators," defined as participants who have no deductible business expenses. This technical definition structurally excludes Bitcoin miners.

Unlike Proof of Stake systems or Proof-of-Stakewhere validators can have minimal expenses, Bitcoin mining under the Proof-of-Work protocol or Proof-of-Work It requires massive investments in infrastructure, specialized hardware, and electricity. By linking the tax benefit to the absence of deductible expenses, the law excludes the industry that secures the Bitcoin network.

"The result is a bill called the 'PARITY Act' that promotes anything but that."the Institute stated in its press release. 

According to the organization, this creates a two-tiered tax system: it offers tax deferrals to staking miners while leaving them trapped in the problem of "phantom income," where they must pay taxes on newly created assets before they have even sold them to cover their operating costs. The BIS noted that Congress had already acknowledged the need to address this imbalance late last year, but warns that this draft, far from correcting it, exacerbates the situation.

A threat to digital innovation in the US?

According to the Bitcoin Policy Institute, the PARITY Act, as currently written, not only affects corporate accounting but also jeopardizes the United States' goal of positioning itself as the leading jurisdiction for digital asset innovation. The organization argues that the tax code should not "play favorites" among different technological consensus mechanisms.

By penalizing the Proof-of-Work (PoW) model in favor of Proof-of-Stake (PoS), the legal framework would be discriminating against the world's most widely capitalized, distributed, and insured digital asset. The BIS also points out that staking systems present distinct and, in some cases, greater regulatory complexities than mining, and therefore there is no sound technical or economic basis for granting them exclusive tax privileges.

Therefore, based on its analysis, the Institute proposes reinstating the general de minimis exemption for all cryptocurrencies and applying the same tax deferral rules to those who receive rewards, regardless of whether they come from mining or the block validation process. The BIS urged the bill's sponsors to review these provisions before the legislative process moves forward, emphasizing that technological neutrality is essential for the United States to maintain its sovereignty in the new digital financial order.