US Congress members 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 crypto and taxes. The proposed legislation is expected to be discussed in the coming months, and its outcome may significantly impact US-based crypto owners, who are 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 version of the bill removes the $200 threshold for stablecoin transactions 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 participants anticipate a strong push to include crypto in any upcoming tax legislation.