Last month, Congressmen Steven Horsford and Max Miller reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, seeking to modernize the US approach to crypto and taxes. As Congress prepares to address tax reforms in the coming months, cryptocurrency may be included, making it crucial for US crypto owners to understand the implications for their digital asset holdings and transactions. The revised PARITY Act, initially released in December and re-released on March 26, introduces changes to 'de minimis' gains, which exempt small transactions from tax reporting.
The industry has long advocated for a de minimis exemption to simplify transactions like buying coffee with crypto without incurring capital gain or loss reporting. The latest version of the bill 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 distinguishes between 'passive staking' and trading activities. Although the bill's next steps are uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.