Representatives Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to modernize the US approach to crypto and taxes. As Congress prepares to address tax reforms, the crypto industry may be impacted, making it crucial for US crypto owners to understand the potential changes.
The revised bill introduces changes to 'de minimis' gains, which could 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 transactions and introduces a deemed basis of $1 for exchanges.
It also applies wash sale rules to digital asset transactions and distinguishes between 'passive staking' and trading activities. Although the bill's future is uncertain, industry insiders expect a strong push to include crypto in upcoming tax legislation.