US Congress members Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the country's approach to crypto and taxes. As Congress prepares to address tax reforms in the coming months, the crypto industry may be included, making it crucial for US crypto owners to understand the potential implications.
The revised bill introduces changes to 'de minimis' gains, which exempt small transactions from tax reporting. The latest draft 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 next steps are uncertain, industry participants expect a strong push to include crypto in any upcoming tax legislation.