Late last month, Congressmen Steven Horsford and Max Miller reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, seeking to overhaul the US approach to crypto and taxes. As Congress prepares to address taxes in the coming months, crypto may be included, making it crucial for US crypto owners to report their digital asset holdings and transactions.
The revised PARITY Act introduces changes, including a section on 'de minimis' gains, which could 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 without incurring capital gain or loss reporting. The latest draft of the bill removes the $200 threshold for stablecoin exemptions and applies wash sale rules to digital asset transactions.
It also differentiates between 'passive staking' and trading activities. Although the bill's next steps are uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.