US Congressmen Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (PARITY) Act, which seeks to reform how the US addresses cryptocurrency and taxes. This development comes as Congress is set to tackle tax reforms in the coming months, with crypto potentially being a key part of these discussions.
The PARITY Act, initially released in December, has undergone revisions, including changes to the 'de minimis' gains section, which could exempt small transactions from tax reporting. The revised bill removes the $200 threshold for de minimis exemptions and introduces a deemed basis of $1 for exchanges. Additionally, it applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities.
Although the bill's future is uncertain, industry participants are pushing for crypto to be included in any upcoming tax legislation, highlighting the importance of clear and comprehensive crypto tax policies for US investors.