Last month, Representatives Steven Horsford and Max Miller reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to reform how the US handles crypto and taxes. As Congress prepares to address tax reforms 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, includes changes to 'de minimis' gains, which exempt small transactions from tax reporting. The updated version removes the $200 threshold for stablecoin transactions and introduces a deemed basis of $1 for exchanges. Additionally, the bill applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities.
Although the bill's next steps are uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.