US Congressmen Steven Horsford and Max Miller have re-introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the US approach to crypto and taxes. The bill is set to be addressed in the coming months, and its outcome is crucial for US-based crypto owners, as they will be required to report their digital asset holdings and transactions.
The revised bill introduces changes to 'de minimis' gains, which exempt small transactions from tax reporting. The industry has long advocated for a de minimis exemption for limited transactions, making it easier for individuals to conduct everyday transactions using crypto without incurring tax burdens.
The latest draft of the bill removes the $200 threshold for stablecoin transactions 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 activities like trading. While the bill's next steps are uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.