Representatives Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to modernize the US approach to crypto and taxes. As Congress prepares to address tax reform in the coming months, the crypto industry may be impacted, making it crucial for US-based crypto owners to stay informed.
The revised bill includes changes to 'de minimis' gains, which could exempt small transactions from tax reporting. The previous version of the bill proposed a $200 threshold for regulated payment stablecoins, but the latest draft removes this threshold and introduces a deemed basis of $1 for exchanges. Additionally, the bill applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities. While the bill's future is uncertain, industry insiders expect a strong push to include crypto in any upcoming tax legislation.