Two Senators in the US have released a new crypto tax bill that will make small cryptocurrency transactions tax-free. The latest Virtual Currency Tax Fairness Act will remove tax on capital gains for purchases below $50.
US Senators Want to Make Crypto Transactions Below $50 Tax-Free
As per the latest report, Senators are working to exempt small cryptocurrency transactions from taxes. Two Senators have released the Virtual Currency Tax Fairness Act.
They include Sen. Pat Toomey (PA) and Sen. Kyrsten Sinema (AZ). The new bill centers on making crypto usage for payment much easier.
This is so that citizens do not pay taxes when using crypto to make small payments. Sen. Toomey stated that:
“Crypto has a huge chance to be used everyday by people. However, taxation may become a major hindrance. We want to make sure usage of crypto for payment purposes is easier for the common man. Hence, we want to exempt small crypto payments from taxation.”
Meanwhile, only purchases that are below $50 will be free from tax. These purchases are usually for goods and services.
The recent legislation is good news to the crypto community in the US. However, the bill has not yet been approved by the Senate.
Furthermore, this bill joins the list of others that lawmakers introduced recently. Among them is the crypto bill by Sen. Lummis and Sinema.
The US Gearing Up To Crypto Regulation
In terms of crypto regulation, the US is working hard to catch up with other countries. Moreover, several lawmakers are paying attention to the positive aspect of the crypto sector.
They have come to recognize that the sector has great potential. Therefore, they are working to make the best use of it.
One of such developments is the crypto custody bill signed by the governor of Louisiana. Another example is the bill on DAOs and DeFi by Sen. Lummis and Gillibrand.
The Lummis/Gillibrand crypto bill aims to foster financial innovation and protect investors. It also plans to put certain digital currencies under the CFTC’s jurisdiction.
Although US lawmakers are beginning to take the matter of regulation seriously, comprehensive regulation will take full effect next year. Besides, they have delayed the stablecoin bill until September due to certain issues.
Furthermore, the US has been very keen on crypto regulation in recent months. Hence, crypto lovers can expect the US crypto market climate to start taking shape soon. So far, the introduced crypto bills have given room for innovation.