US lawmakers introduce a bill to simplify taxing crypto gains

A US lawmaker introduced a proposal to amend existing legislation regarding taxing cryptocurrency transactions. The bill dubbed as the Virtual Currency Tax Fairness Act has bipartisan support from Rep. Schweikert, Soto, and Emmer.

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Representative Suzan Delbene last week introduced a proposal to amend the crypto taxation law. The bill proposes to exempt personal cryptocurrency transactions from taxation for capital gains. If passed, users would not have to report transactions that resulted in a gain of less than $200.

 

Current tax laws regarding cryptocurrencies are vague.

It is a challenging task for lawmakers to categorize cryptocurrency and apply one law to all sorts of transactions. The new proposed bill looks to simplify the taxation policies to give users more freedom to deal in cryptocurrencies for personal expenses without having to report every single transaction. A US lawmaker had earlier introduced a bill that featured a substantially larger exemption.

 

The bill treats cryptocurrency similar to any other foreign currency.

The bill introduced by Reps. DelBene, Schweikert, Soto, and Emmer, would simplify the crypto taxation by treating cryptocurrency similar to any other foreign policy. If passed, low-value day to day would be exempted from capital gains, up to a point. The lawmakers worked with Washington DC-based research group Coin Center to draft the bill. The proposed could potentially help in the adoption of cryptocurrencies.

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Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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