US Representatives Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, seeking to reform the US approach to crypto and taxes. As Congress prepares to address tax reforms in the coming months, cryptocurrency may be included, making it crucial for US crypto owners to understand the potential changes.
The revised bill, initially released in December and updated in March, introduces notable changes, including the concept of 'de minimis' gains, which would 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 distinguishes between 'passive staking' and trading activities. Although the bill's future is uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.