US Representatives Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to reform the US approach to cryptocurrency and taxes. As Congress prepares to address tax reforms in the coming months, the crypto industry may be included, making it crucial for US crypto owners to understand the potential changes. The revised bill introduces a new approach to 'de minimis' gains, which could exempt small transactions from tax reporting.
The previous version of the bill proposed a $200 threshold for 'regulated payment stablecoins', but the latest draft removes this threshold and introduces a deemed basis of $1 for exchanges. 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.