Representatives Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to modernize the US approach to crypto and taxes. As Congress prepares to address tax reforms in the coming months, the crypto industry may be impacted, making it crucial for US crypto owners to understand the potential changes. The revised bill introduces notable changes, including a section on 'de minimis' gains, which could 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 gains or losses. The latest draft of the bill removes the $200 threshold for regulated payment stablecoins and introduces a deemed basis of $1 for exchanges. Additionally, it applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities.
Although the bill's future is uncertain, industry insiders expect a strong push to include crypto in any upcoming tax legislation.