Representatives Steven Horsford (D-Nev.) and Max Miller (R-Ohio) have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields (PARITY) Act, which aims to update the US approach to cryptocurrency and taxes. The bill is expected to be considered as part of a broader tax reform effort in the coming months, making it crucial for US crypto owners who will need to report their digital asset holdings and transactions.
The revised bill includes changes to the 'de minimis' gains section, which could exempt small transactions from tax reporting. The industry has long advocated for a de minimis exemption to simplify transactions like buying coffee with crypto without incurring capital gains or losses.
The latest draft of the bill removes the $200 threshold for exemptions and introduces a deemed basis of $1 for exchanges. It also applies wash sale rules to 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 any upcoming tax legislation.