US Congressmen Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to reform the country's approach to cryptocurrency and taxes. The bill is set to be reviewed in the coming months as part of a broader discussion on tax reform, which may include cryptocurrency. The PARITY Act, first introduced in December, has been revised to include changes such as the handling of 'de minimis' gains, which allow for small transactions to be exempt from tax reporting.
The revised bill removes the $200 threshold for de minimis exemptions and instead proposes a deemed basis of $1 for exchanges. Additionally, the bill would apply wash sale rules to digital asset transactions and differentiate between 'passive staking' and trading activities.
While the bill's future is uncertain, industry insiders expect a strong push to include cryptocurrency in any upcoming tax legislation.