US Congressmen Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the country's approach to cryptocurrency and taxes. The bill could have significant implications for individuals who own cryptocurrency in the US, as they will be required to report their digital asset holdings and transactions.
The revised bill includes changes to 'de minimis' gains, which could exempt small transactions from tax reporting. The industry has long advocated for a de minimis exemption, which would make it easier for individuals to make small transactions without having to report capital gains or losses.
The bill also addresses wash sale rules and draws a distinction between 'passive staking' and trading activities. While the next steps for the bill are uncertain, industry participants expect a strong push to include cryptocurrency in any upcoming tax legislation.