Lawmakers 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 cryptocurrency and taxes. As Congress prepares to address taxes in the coming months, cryptocurrency may be included, making it crucial for US crypto owners to understand the implications. The revised bill 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. The latest draft of the bill 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.