Legislators 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 cryptocurrency and taxes. As Congress prepares to address tax reform in the coming months, cryptocurrency may be included, making it crucial for US crypto owners to understand the potential implications. The revised bill, initially released in December and re-released in March, introduces changes to 'de minimis' gains, which exempt small transactions from tax reporting.
The updated version removes the $200 threshold for regulated payment stablecoins and instead establishes 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.