Representatives Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to reform the US approach to crypto taxation. This move comes as Congress prepares to tackle tax reform in the coming months, potentially including cryptocurrency. The proposed legislation is crucial for US crypto holders, as it will impact how they report their digital asset transactions.
The revised bill includes changes to 'de minimis' gains, which exempt small transactions from tax reporting. The updated 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 differentiates between 'passive staking' and trading activities. While the bill's future is uncertain, industry insiders expect a strong push to include crypto in upcoming tax legislation.