US Congressmen 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 cryptocurrency and taxes. The bill is particularly significant for US-based cryptocurrency owners, as they will be required to report their digital asset holdings and transactions. The proposed legislation was first introduced in December and has undergone revisions, including changes to the 'de minimis' gains section, which concerns exemptions for small transactions. The revised bill removes the $200 threshold for exemptions and introduces a new basis for exchanges.
Additionally, the legislation would apply wash sale rules to digital asset transactions and differentiate between 'passive staking' and trading activities. Although the bill's future is uncertain, industry participants are pushing for the inclusion of cryptocurrency in upcoming tax legislation.