US Congressmen 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. As Congress prepares to address tax reforms in the coming months, the crypto industry may be included, making it crucial for US crypto owners to understand the potential implications on their digital asset holdings and transactions. The revised PARITY Act, initially released in December and re-released on March 26, introduces changes to 'de minimis' gains, which exempt small transactions from tax reporting. The new version removes the $200 threshold for stablecoin transactions and instead recognizes no gain or loss unless the taxpayer's basis is less than 99 percent of the redemption value.
The bill 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 crypto in any upcoming tax legislation.