This bill aims to modernize the tax treatment of digital assets by providing clear definitions and integrating them into existing Internal Revenue Code provisions. It defines a "digital asset" as a digital representation of value on a cryptographically secured distributed ledger, while clarifying that financial assets or other property represented digitally are treated as their underlying asset. The legislation also introduces the concept of an "actively traded digital asset" for which quotations are readily available on an exchange. A key provision establishes a de minimis exclusion from gross income for gains or losses from using digital assets to purchase products or services in personal transactions. This exclusion applies to transactions up to $300 and has an annual aggregate gain limit of $5,000, with specific record-keeping requirements. However, it does not apply to transactions involving cash, cash equivalents, or other digital assets. The bill extends several existing tax rules for securities to digital assets. It amends Section 1058 to include digital asset lending agreements under the same non-recognition treatment as securities lending, requiring appropriate basis adjustments. Furthermore, it applies wash sale rules to digital assets, disallowing losses on sales where substantially identical assets are reacquired within 30 days, but specifically exempts payment stablecoins from these rules. Dealers and traders in actively traded digital assets are also permitted to elect mark-to-market accounting , aligning their treatment with securities professionals. For digital asset production, the bill defers income recognition for mining and staking activities until the produced assets are sold or otherwise disposed of, treating such income as ordinary income. It also clarifies that the source of this income is determined by the recipient's residence. Finally, the legislation facilitates charitable giving by including actively traded digital assets in provisions related to qualified appraisals and contributions to private foundations. Most of these amendments, including the de minimis exclusion, digital asset lending, wash sale rules, mark-to-market election, and mining/staking provisions, are set to terminate for taxable years beginning after December 31, 2035. The effective dates for these changes vary, generally applying to transactions or taxable years after December 31, 2025, or the date of enactment.