Late last month, Congressmen Steven Horsford and Max Miller re-introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, seeking to update the US approach to crypto and taxes. As Congress prepares to address taxes 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 introduces changes, including a section on "de minimis" gains, which could exempt small transactions from tax reporting. The industry has long advocated for a de minimis exemption, making it easier for individuals to make transactions without reporting capital gains or losses.
The latest draft of the bill addresses concerns around de minimis exemptions, wash sale rules, and distinctions between "passive staking" and trading. Although the next steps for the bill are uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.