US Congressmen 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. The proposed legislation, which was first introduced in December and revised in March, aims to update the US tax code to better accommodate cryptocurrencies. As Congress prepares to address tax reforms in the coming months, the crypto industry is pushing for clearer guidelines on digital asset taxation.
The revised bill includes provisions for 'de minimis' gains, which would exempt small transactions from tax reporting, and applies wash sale rules to digital asset transactions. It also differentiates between 'passive staking' and trading activities.
Although the bill's prospects are uncertain, industry insiders expect a strong push to include crypto in any upcoming tax legislation.