U.S. Lawmakers seeks wide crypto adoption: Introduced Virtual Currency Tax Fairness Act

• U.S lawmakers introduced a bill to expand the adoption of cryptocurrencies for payments in the country.
• Anyone has to keep track and record the translation they make using crypto, which puts it at a disadvantage, says Jerry Brito, Executive Director of Coin Center.
• Personal transactions of $200 or less would be exempted, through the Virtual Currency Tax Fairness Act.

U.S. lawmakers recently introduced the Virtual Currency Tax Fairness Act, which aims to expand the adoption of cryptocurrencies for payments. The Act is to strengthen the legitimacy of cryptocurrency in the digital economy. 

Representatives David Schweikert and Suzan DelBene have introduced the Virtual Currency Tax Fairness Act 2022. The bipartisan bill is co-sponsored by Congressmen Tom Emmer and Darren Soto.

How the Act would facilitate the citizens:

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According to the lawmakers, this bill would provide a workable structure for taxing purchases made with virtual currencies also known as cryptocurrencies. And that it will further expand the use of cryptocurrencies for payments.

The current legislation says that any gains from crypto must be outlined as taxable income, no matter what the purpose or size of the transaction is. And they further highlight this for purchases as small as buying a cup of coffee. 

They added that the current law makes it nearly impossible for people to transact in cryptocurrencies in their everyday life 

This Virtual Currency Fairness Act will exclude personal transactions via virtual currencies when the gains are less than $200.

According to the Executive Director of cryptocurrency think tank Coin Center, Jerry Brito, currently anyone has to keep track and report each transaction they make using the digital currency, whether it’s an investment trade or buying a latte at a cafe. And this creates friction and puts digital currency at a disadvantage in comparison to other digital payments modes. 

He further highlighted that this bill would give an equal treatment of foreign currency to cryptocurrency. 

This bill seems to only facilitate transactions via cryptocurrency in the country. It might increase the crypto adoption for day-to-day small payments and transactions.