US Congress members Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to reform the country's crypto tax policies. This bill is particularly significant for US-based crypto owners, as they will be required to report their digital asset holdings and transactions.
The revised bill, initially released in December and updated in March, includes notable changes to 'de minimis' gains, which exempt small transactions from tax reporting. The updated 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 differentiates between 'passive staking' and trading activities.
Although the bill's next steps are uncertain, industry participants anticipate a strong push to include crypto in any upcoming tax legislation.