US Congress members 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 approach to crypto and taxes. As Congress prepares to address tax legislation in the coming months, crypto may be included, making it crucial for US-based crypto owners to understand the potential implications.
The revised bill introduces changes to 'de minimis' gains, which could exempt small transactions from tax reporting. The latest draft removes the $200 threshold for regulated payment stablecoins and creates 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 next steps for the bill are uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.