US Congressmen 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 crypto and taxes. As Congress prepares to address tax issues in the coming months, crypto may be included, making it crucial for US crypto owners to understand the implications. 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 to make it easier for individuals to use crypto for everyday transactions without incurring tax burdens.
The latest draft of the bill applies wash sale rules to 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 crypto in any upcoming tax legislation.