Representatives Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, seeking to modernize the US approach to crypto and taxes. As Congress prepares to address tax reforms in the coming months, the crypto industry may be impacted, making it crucial for US crypto owners to report their digital asset holdings and transactions. The revised PARITY Act, initially released in December and re-released on March 26, introduces changes to 'de minimis' gains, which exempt small transactions from tax reporting.
The bill now proposes that no gain or loss be recognized on the sale of regulated payment stablecoins unless the taxpayer's basis is less than 99 percent of the redemption value. Additionally, the latest draft applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities. While the bill's next steps are uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.