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 US approach to crypto and taxes. As Congress prepares to address taxes in the coming months, crypto may be included, making it crucial for US-based crypto owners to understand the potential changes. The revised bill includes changes to 'de minimis' gains, which could exempt small transactions from tax reporting, and introduces a distinction between 'passive staking' and trading activities.
The bill would also apply wash sale rules to digital asset transactions. Although the next steps for the bill are uncertain, industry conversations suggest a strong push to include crypto in any upcoming tax legislation.