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 tax legislation in the coming months, cryptocurrency may be included, making it crucial for US crypto owners to understand the potential implications.
The revised bill introduces changes to 'de minimis' gains, which exempt small transactions from tax reporting. The latest version 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 future is uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.