Lawmakers 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 taxes in the coming months, cryptocurrency may be included, making it crucial for US crypto owners to report their digital asset holdings and transactions.
The revised bill introduces changes, including the section on 'de minimis' gains, which allows for small transactions to be exempt from tax reporting. The industry has long advocated for a de minimis exemption for limited transactions, making it easier for individuals to conduct minor transactions without reporting capital gains or losses. The revised bill also addresses wash sale rules for digital asset transactions and distinguishes between 'passive staking' and trading activities. Although the next steps for the bill are uncertain, industry participants expect a strong push to include cryptocurrency in any upcoming tax legislation.