U.S. Congressmen Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields (PARITY) Act, which seeks to update the country's crypto tax policies.
The bill's revisions are significant for U.S. crypto owners, as they will be required to report their digital asset holdings and transactions.
The PARITY Act was initially released in December and has undergone changes, including the removal of the $200 threshold for de minimis exemptions. Instead, the new draft proposes that no gain or loss be recognized on the sale of regulated payment stablecoins unless the taxpayer's basis is less than 99 percent of the redemption value. The bill also introduces wash sale rules for digital asset transactions and distinguishes between 'passive staking' and trading activities.
While the bill's future is uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.