Representatives Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the US approach to crypto and taxes. As Congress prepares to address tax legislation, crypto may be included, making it crucial for US-based crypto owners to understand the implications.
The revised bill introduces changes, including the concept of 'de minimis' gains, which could exempt small transactions from tax reporting. The industry has long advocated for such exemptions to simplify transactions like buying coffee with crypto. The latest draft also addresses wash sale rules and distinguishes between 'passive staking' and trading activities. Although the bill's future is uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.