US Congress members Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the country's approach to cryptocurrency and taxes. The bill is expected to be part of a broader tax reform effort in the coming months, which could have significant implications for cryptocurrency owners in the US.
The revised bill includes changes to the 'de minimis' gains section, which could exempt small transactions from tax reporting. The industry has long advocated for such an exemption, which would make it easier for individuals to use cryptocurrency for everyday transactions without incurring significant tax burdens.
The bill also addresses wash sale rules and draws a distinction between 'passive staking' and trading activities. While the next steps for the bill are uncertain, industry participants expect a strong push to include cryptocurrency in any upcoming tax legislation.