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. The bill is significant for US crypto owners, as they will need to report their digital asset 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 make it easier for individuals to use crypto for everyday transactions without incurring tax burdens. The latest draft of the bill also applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities.
Although the next steps for the bill are uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.