US Congressmen Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to reform the country's approach to crypto and taxes. This legislation is crucial for US crypto owners, as they will be required to report their digital asset holdings and transactions.
The revised bill includes changes to 'de minimis' gains, which exempt small transactions from tax reporting. The industry has long advocated for a de minimis exemption to simplify transactions like buying coffee with crypto. The latest draft of the bill removes the $200 threshold for stablecoin exemptions and applies wash sale rules to digital asset transactions.
It also differentiates between 'passive staking' and trading activities. Although the bill's next steps are uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.