Core Insights - The current regulatory framework for cryptocurrencies in the U.S. is complex and inconsistent, prompting bipartisan efforts to reform it [1] - A new bipartisan proposal, the Digital Asset PARITY Act, aims to modernize the taxation of digital assets and align it with traditional finance [2] Regulatory Reforms - The Digital Asset PARITY Act introduces five major reforms to simplify the treatment of digital assets [2] - The proposed legislation seeks to reduce administrative burdens for crypto users and businesses [2] Taxation Changes - A significant provision of the bill is the de minimis exemption for small stablecoin transactions, which would exempt gains under $200 from capital gains taxes [3] - This exemption is designed to encourage everyday crypto payments without the complexity of reporting obligations [4] - The Treasury Department will have the authority to limit the exemption to prevent potential abuse or tax avoidance [4] Additional Provisions - The bill also addresses the definition and sourcing of digital asset income, tax treatment of digital asset lending, expansion of "wash sale" rules, and mark-to-market election for dealers and traders [6]