U.S. Lawmakers Reintroduce Digital Asset Protection Act

U.S. lawmakers Steven Horsford, Max Miller, Suzan DelBene, and Mike Carey have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yield Act, also known as the Equality Act, this Wednesday. According to ChainCatcher, the revised bill includes several key provisions. It stipulates that regulated payment stablecoins should not incur gains or losses if their cost basis is at least 99% of the redemption value. Additionally, it establishes a safe harbor for broker transactions or taxpayer account transactions and clarifies that 'wash sale' rules apply to digital assets. The bill also mandates the IRS to assess the current tax burden on small crypto transactions and explore the feasibility and potential misuse risks of a tax exemption for transactions under $200. The crypto industry has long advocated for tax exemptions on small transactions to promote the use of cryptocurrencies in everyday payments. Congressman Horsford emphasized that tax policy is fundamental to the crypto regulatory framework, noting that current tax laws have yet to address many core issues related to digital assets.