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 US approach to crypto and taxes. This development is crucial for US-based crypto owners, as they will need to report their digital asset holdings and transactions.
The revised bill addresses 'de minimis' gains, 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. The revised bill also applies wash sale rules to digital asset transactions and differentiates between 'passive staking' and trading activities. Although the next steps for this bill are uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.