US Representatives Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields (PARITY) Act, which seeks to update the country's approach to cryptocurrency and taxes. The bill is significant for US-based cryptocurrency owners, as they will be required to report their digital asset holdings and transactions.
The revised act includes changes to 'de minimis' gains, which allow for small transactions to be exempt from tax reporting. The latest draft also applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities.
While the next steps for the bill are uncertain, industry participants expect a strong push to include cryptocurrency in any upcoming tax legislation.