US Congress members Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the country's cryptocurrency tax policies. The proposed legislation is particularly significant for US-based cryptocurrency owners, as they will be required to report their digital asset holdings and transactions. The bill, initially released in December, has undergone revisions, including changes to the 'de minimis' gains section, which could exempt small transactions from tax reporting. The updated version removes the $200 threshold for regulated payment stablecoins and introduces 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 cryptocurrency in upcoming tax legislation.