Representatives 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 legislation, crypto may be included, making it crucial for US crypto owners to report their holdings and transactions. The revised bill includes changes to 'de minimis' gains, which exempt small transactions from tax reporting.
The industry has long advocated for a de minimis exemption to simplify transactions like buying coffee with crypto. The latest draft of the bill applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading. Although the next steps for the bill are uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.