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 included, making it crucial for US crypto owners to understand the potential implications.
The revised bill, initially released in December and re-released on March 26, features changes to 'de minimis' gains, which exempt small transactions from tax reporting. The updated version removes the $200 threshold for regulated payment stablecoins and introduces a deemed basis of $1 for exchanges. 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 upcoming tax legislation.