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. This comes as Congress is set to address taxes in the coming months, with crypto likely to be included.
The PARITY Act, first released in December, has been re-released with changes, including a section on 'de minimis' gains, which could exempt small transactions from tax reporting. The revised bill removes the $200 threshold for de minimis exemptions and creates a deemed basis of $1 for exchanges. It also applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading.
While the next steps for the bill are uncertain, industry participants expect a strong push to include crypto in any tax legislation that becomes law.