US Congressmen Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to reform the US approach to crypto and taxes. This comes as Congress is set to address tax reforms in the coming months, which may include crypto. The bill is crucial for US-based crypto owners, as they will need to report their digital asset holdings and transactions. The revised bill includes 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, such as buying coffee with crypto, without incurring capital gains or losses. The latest version of the bill removes the $200 threshold for de minimis exemptions and introduces a deemed basis of $1 for exchanges.
Additionally, it 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 any upcoming tax legislation.