US Congressmen Steven Horsford and Max Miller have re-introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the US approach to cryptocurrency and taxes. This legislation is crucial for US-based crypto owners, as they will be required 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 new version removes the $200 threshold for regulated payment stablecoins and introduces 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 next steps for the bill are uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.