US Representatives Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the country's crypto tax policies. The bill's revisions come as Congress prepares to address tax reforms, potentially including cryptocurrency.
The proposed legislation is crucial for US crypto owners, as they will need to report their digital asset holdings and transactions. The revised bill introduces changes to 'de minimis' gains, which exempt small transactions from tax reporting.
The new version removes the $200 threshold and creates a deemed basis of $1 for exchanges. It also applies wash sale rules to digital asset transactions and distinguishes 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.