Representatives 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 and taxes. As Congress prepares to address tax reforms in the coming months, the crypto industry may be impacted, making it crucial for US crypto owners to understand the potential changes. The revised bill, initially released in December and re-released on March 26, introduces changes to 'de minimis' gains, which exempt small transactions from tax reporting. The latest draft removes the $200 threshold for regulated payment stablecoins and introduces a deemed basis of $1 for exchanges.
It also applies wash sale rules to digital asset transactions and differentiates 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.