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 cryptocurrency and taxes. The bill is set to be discussed in the coming months, and its outcome may significantly impact US-based cryptocurrency owners who will need to report their digital asset holdings and transactions.
The revised Act includes changes to 'de minimis' gains, which exempt small transactions from tax reporting. The new version removes the $200 threshold for stablecoin transactions and introduces a deemed basis of $1 for exchanges.
Additionally, the bill applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities. Although the next steps for the bill are uncertain, industry participants expect a strong push to include cryptocurrency in any upcoming tax legislation.