US Representatives 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 tax reforms, the crypto industry may be included. This is significant for US crypto owners, who must report their digital asset holdings and transactions.
The revised bill includes changes to 'de minimis' gains, which exempt small transactions from tax reporting. The industry has long advocated for a de minimis exemption, which would simplify transactions like buying coffee with crypto.
The latest draft of the bill removes the $200 threshold for exemptions and applies wash sale rules to digital asset transactions. It also distinguishes between 'passive staking' and trading activities. While the bill's next steps are uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.