US Congress members Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, seeking to modernize the country's crypto tax policies. As Congress prepares to tackle tax reforms in the coming months, the crypto industry may be affected, making it crucial for US-based crypto owners to stay informed about reporting requirements for their digital assets.
The revised bill, initially released in December and re-released on March 26, introduces changes, including amendments to 'de minimis' gains, which exempt small transactions from tax reporting. The updated version removes the $200 threshold for regulated payment stablecoins and instead proposes a deemed basis of $1 for exchanges. Additionally, the bill applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities. While the bill's future is uncertain, industry insiders anticipate a strong push to include crypto in upcoming tax legislation.