U.S. bipartisan lawmakers have reintroduced the “Digital Asset Protection, Accountability, Regulation, Innovation, Tax, and Revenue Act” (Parity Act), a crypto tax reform bill. The proposal would update digital asset tax rules and require the U.S. Internal Revenue Service (IRS) to study how a tax exemption mechanism for “small digital asset transactions” would apply and what its potential impacts could be. The bill proposes that compliant payments made in stablecoins would not be included in gains or losses when the cost basis is less than 99% of the redemption value. It also covers topics including digital asset wash sale rules, the tax treatment of validator rewards, and safe harbors for transactions involving broker and taxpayer accounts. The bill further requires the IRS to assess the tax burden of small crypto transactions under $200 under current law and the potential abuse risks associated with related exemption mechanisms. (CoinDesk)