Bipartisan lawmakers reintroduce PARITY Act, proposing IRS review of tax exemption for small transactions

Odaily reports that bipartisan U.S. lawmakers on Wednesday reintroduced a revised version of the crypto tax bill, the "Digital Asset Protection, Regulation, Innovation, Taxation, and Yield Act," known as the PARITY Act. If signed into law, the bill would direct the IRS to review the potential impact of small transaction tax exemptions. The new version stipulates that "regulated payment stablecoins" generate no gains or losses if their cost basis is at least 99% of their redemption value; creates a safe harbor for transactions conducted through brokers or taxpayer accounts; defines the application of digital asset "wash sale" rules; and clarifies the tax treatment for validators who earn digital assets through staking. Additionally, the bill requires the IRS to review the tax burden of small digital asset transactions, assess how many transactions under $200 are covered under existing law, and study the feasibility and potential abuse risks of small transaction tax exemptions. (CoinDesk)