Representatives Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to modernize the US approach to crypto taxation. As Congress prepares to address tax legislation in the coming months, the crypto industry may be impacted, making it crucial for US crypto owners to understand the potential changes. The revised bill, initially released in December and re-released in March, includes notable changes, such as the removal of the $200 threshold for de minimis exemptions and the introduction of a deemed basis of $1 for exchanges. Additionally, the bill would apply wash sale rules to digital asset transactions and differentiate between 'passive staking' and trading activities.
While the bill's future is uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.