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. The bill is part of a broader effort by Congress to address tax legislation in the coming months, with potential implications for individuals who own cryptocurrency. The revised PARITY Act, first released in December and re-released on March 26, introduces changes to the tax reporting of digital asset transactions, including a section addressing 'de minimis' gains.
The industry has long advocated for a de minimis exemption, which would allow for small transactions to be exempt from tax reporting. The revised bill also applies wash sale rules to digital asset transactions and draws a distinction between 'passive staking' and trading activities. While the next steps for the bill are uncertain, industry participants expect a strong push to include crypto in any tax legislation that becomes law.