US Congressmen Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to reform how the US handles crypto and taxes. With Congress set to address taxes in the coming months, crypto may be included, making it crucial for US crypto owners to understand the implications. The revised bill, initially released in December, has undergone changes, including the removal of the $200 threshold for de minimis exemptions.
Instead, it 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. The bill also 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 any upcoming tax legislation.