US Congress members Steven Horsford and Max Miller have re-introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the US approach to crypto and taxes. This revised bill is significant for US crypto owners, as they will need to report their digital asset holdings and transactions. The bill was first released in December and has been re-released for further review.
One notable change is the section addressing 'de minimis' gains, which could exempt small transactions from tax reporting. The industry has long advocated for a de minimis exemption to simplify transactions, such as buying coffee with crypto, without incurring a tax burden. The revised bill removes the $200 threshold and introduces a deemed basis of $1 for exchanges.
It also applies wash sale rules to digital asset transactions and differentiates between 'passive staking' and trading activities. While the next steps for this bill are uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.