US Congressmen Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to reform how the US handles 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 bill features changes to 'de minimis' gains, which exempt small transactions from tax reporting. The industry has long advocated for a de minimis exemption to facilitate everyday transactions like buying coffee with crypto without incurring capital gains or losses.
The updated bill removes the $200 threshold and introduces a deemed basis of $1 for exchanges. It also applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities. While the bill's next steps are uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.