US Congressmen Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, seeking to update the country's approach to crypto and taxes. As Congress prepares to address tax legislation 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 bill includes changes to 'de minimis' gains, which exempt small transactions from tax reporting, and introduces a new approach to recognizing gains or losses on the sale of regulated payment stablecoins.
The bill 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.