American lawmakers pass an amended bill, once again attempting to adjust cryptocurrency tax policies

CryptoWorld News reports that, according to CoinDesk, U.S. Representatives Steven Horsford and Max Miller have reintroduced the “Digital Asset Protection, Regulation, Innovation, Tax, and Revenue Act” (PARITY Act), aimed at amending how the IRS handles cryptocurrency taxation. The bill was first released as a discussion draft in December last year and was reissued on March 26 of this year for further review. The bill removes the previous exemption threshold of $200 for small transactions, stipulating that when trading with regulated payment stablecoins, gains or losses are not recognized unless the taxpayer’s cost basis in the stablecoin is less than 99% of its redemption value, and sets a $1 recognized cost basis for exchange transactions. The bill also applies wash sale rules to digital asset trading and distinguishes between “passive staking” and trading activities. It is currently unclear what the next steps for the bill will be, but industry insiders expect strong efforts to incorporate crypto provisions into tax legislation that could become law.