US Congressmen Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the country's crypto tax policies. This revised bill comes as Congress is set to address tax reforms in the coming months, with potential implications for crypto owners. The PARITY Act, first introduced in December, has undergone changes, including the removal of a $200 threshold for 'de minimis' gains on stablecoin transactions. Instead, the new draft recognizes no gain or loss on the sale of regulated payment stablecoins unless the taxpayer's basis is less than 99% of the redemption value.
The bill also proposes applying wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities. While the bill's future is uncertain, industry insiders expect a strong push to include crypto in any upcoming tax legislation.