US Congressmen 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. This revised bill comes as Congress is set to address tax reforms in the coming months, with potential implications for crypto owners in the US. The PARITY Act was initially released in December and has undergone further review, with notable changes including the handling of 'de minimis' gains. The bill now proposes that no gain or loss be recognized on the sale of regulated payment stablecoins unless the taxpayer's basis is less than 99 percent of the redemption value.
Additionally, the bill applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities. While the next steps for the bill are uncertain, industry participants anticipate a strong push to include crypto in any upcoming tax legislation.