US Congress members Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the US approach to cryptocurrency and taxes. As Congress prepares to address tax issues in the coming months, crypto may be included, making it crucial for US-based crypto owners to understand the implications for reporting digital asset holdings and transactions. The revised bill includes changes to 'de minimis' gains, which exempt small transactions from tax reporting. The industry has long advocated for a de minimis exemption to facilitate everyday transactions, such as buying coffee, without incurring capital gains or losses on crypto used.
The revised bill removes the $200 threshold for de minimis exemptions and introduces a deemed basis of $1 for exchanges. Additionally, it applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities. The bill's next steps are uncertain, but industry participants expect a strong push to include crypto in any upcoming tax legislation.