Lawmakers Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the US approach to crypto taxation. The bill could have significant implications for individuals who own cryptocurrency in the US, as they will be required to report their digital asset holdings and transactions.
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 a de minimis exemption to make it easier for individuals to use cryptocurrency for everyday transactions without incurring tax burdens. The latest draft of the bill also applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities.
While the next steps for the bill are uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.