Legislators Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to reform how the US handles crypto and taxes. This move comes as Congress is set to address tax reforms in the coming months, with crypto potentially being part of the discussion.
The revised bill includes changes to 'de minimis' gains, which could exempt small transactions from tax reporting. The industry has long advocated for such exemptions, which would make it easier for individuals to use crypto for everyday transactions without incurring significant tax burdens.
The latest draft of the bill also addresses wash sale rules and draws a distinction between 'passive staking' and trading activities. Although the next steps for the bill are uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.