US SB2207

Defines "digital asset" in the tax code as any digital representation of value recorded on a cryptographically secured distributed ledger, while excluding tokenized financial assets and payment stablecoins from certain provisions

Creates a de minimis exclusion allowing taxpayers to exclude up to $5,000 annually in gains from using digital assets to purchase goods and services, with a $300 per-transaction limit (adjusted for inflation after 2026)

Extends wash sale rules to digital assets, disallowing loss deductions when substantially identical assets are acquired within 30 days before or after a sale

Defers income recognition for digital asset mining and staking until the assets are sold or disposed of, with income sourced based on the recipient's residence

Allows mark-to-market election for dealers and traders in actively traded digital assets, and permits charitable contributions of appreciated digital assets to private foundations without reduction for capital gains (provisions sunset December 31, 2035)