US Congress members Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the country's approach to cryptocurrency and taxes. As Congress prepares to address taxes in the coming months, cryptocurrency may be included, making it crucial for US crypto owners to report their digital asset holdings and transactions.
The revised bill 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 having to report capital gains or losses.
The revised bill also addresses wash sale rules for digital asset transactions and distinguishes 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.