In a bid to update the US approach to crypto and taxes, Congressmen Steven Horsford (D-Nev.) and Max Miller (R-Ohio) have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields (PARITY) Act. This development comes as Congress is set to address taxes in the coming months, with crypto potentially being part of the discussion. The PARITY Act, first released in December, has undergone revisions, with the latest version introducing changes to 'de minimis' gains and exemptions for small transactions.
The bill now addresses the recognition of gain or loss on the sale of regulated payment stablecoins, removing the $200 threshold and establishing 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 next steps for the bill are uncertain, industry participants anticipate a strong push to include crypto in any upcoming tax legislation.