US Congress members 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 crypto tax policies. As Congress prepares to address tax reforms in the coming months, cryptocurrency may be included, making it crucial for US-based crypto owners to understand the potential implications. The revised bill introduces changes to 'de minimis' gains, which allow for small transactions to be exempt from tax reporting.
The industry has long advocated for a de minimis exemption to facilitate everyday transactions, such as buying coffee, without incurring capital gain or loss reporting. The latest draft of the bill removes the $200 threshold for exemptions and creates a deemed basis of $1 for exchanges.
Additionally, it 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 conversations suggest a strong push to include crypto in upcoming tax legislation.