Legislators 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 crypto and taxes. The bill could have significant implications for individuals who own cryptocurrency, as they will be required to report their digital asset holdings and transactions. The revised bill includes changes to 'de minimis' gains, which exempt small transactions from tax reporting.
The latest draft also 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.