Representatives Steven Horsford (D-Nev.) and Max Miller (R-Ohio) have re-introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields (PARITY) Act, which seeks to update the US approach to crypto and taxes. As Congress prepares to address taxes in the coming months, crypto may be included, making it crucial for US crypto owners to report their digital asset holdings and transactions.
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 industry has long advocated for a de minimis exemption to simplify transactions like buying coffee with crypto without incurring capital gain or loss reporting. The revised bill removes the $200 threshold and establishes a deemed basis of $1 for exchanges, while also applying wash sale rules to digital asset transactions and distinguishing between 'passive staking' and trading.
Although the bill's next steps are uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.