US lawmakers have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields (PARITY) Act to reform the country's crypto tax policies. The revised bill, submitted by Congressmen Steven Horsford and Max Miller, seeks to update the US approach to cryptocurrency and taxes.
As Congress prepares to address tax reforms in the coming months, the crypto industry may be included, making it crucial for US-based crypto owners to report their digital asset holdings and transactions. The PARITY Act was initially released in December and has undergone revisions, including changes to 'de minimis' gains, which exempt small transactions from tax reporting. The latest draft removes the $200 threshold for exemptions 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 next steps are uncertain, industry participants expect a strong push to include crypto in upcoming tax legislation.