US Representatives Steven Horsford and Max Miller have re-introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to reform the country's cryptocurrency tax policies. As Congress prepares to address tax reforms in the coming months, the crypto industry may be impacted, making it crucial for US-based crypto owners to stay informed about reporting requirements for their digital assets. 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 latest version of the bill removes the $200 threshold for de minimis exemptions and instead proposes that no gain or loss be recognized on the sale of regulated payment stablecoins unless the taxpayer's basis is less than 99% of the redemption value. Additionally, the bill applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities. While the bill's future is uncertain, industry insiders expect a strong push to include crypto in any upcoming tax legislation.