US Congressmen Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, seeking to modernize the country's crypto tax policies. This revised bill comes as Congress is set to address tax reforms in the coming months, which may include cryptocurrency. The proposed legislation is crucial for US-based crypto owners, as they will be required to report their digital asset holdings and transactions. The revised bill features changes to the 'de minimis' gains section, which allows for small transactions to be exempt 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. The updated bill removes the $200 threshold 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. While the bill's future is uncertain, industry insiders expect a strong push to include crypto in upcoming tax legislation.