Last month, Congressmen Steven Horsford and Max Miller reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to reform the US approach to crypto and taxes. As Congress prepares to address tax reforms in the coming months, crypto may be included, making it crucial for US crypto owners to report their digital asset holdings and transactions. The revised PARITY Act introduces changes, including a section on 'de minimis' gains, which allows for small transactions to be exempt from tax reporting.
The bill also proposes applying 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.