Crypto industry supporters have always asked for concessions from taxes on small crypto transactions.
United States Senators asking for regulations of crypto transactions. Before you dive into another skepticism, this is not yet another attempt to take control over crypto assets. The recently pushed legislation is an attempt to make small crypto transactions ‘tax-free’ for crypto users in America.
Two prominent US Senators—Republican Senator Patrick Toomey and Democratic Senator Kyrstem Sinema—are behind this crypto payment tax exemption bill. This was seen as an effort to make small crypto payments easy and seamless, releasing the burden of tax from them. As reported, the bill asks for tax exemption of crypto transactions worth up to 50 USD. This also applies to any crypto trade that accounts for purchasing crypto assets for less than 50 USD.
The recent, Virtual currency Tax Fairness Act, replicates some similar efforts that were made earlier. One such known effort could be found when Republican Senator Cynthia Lummis and Democratic Senator Kirsten Gillibrand, went on to introduce a similar yet comprehensive bill. This bill has also pitched the idea of making small transactions of 200 USD in crypto free from taxes.
Senator Toomey said that cryptocurrencies are full of potential and they can play a crucial role in day to day lives of American crypto users. However, the existing tax regimes block the road, he said. Such efforts of Toomey towards helping the crypto industry is his contribution towards helping the crypto industry.
For quite a long time, proponents of cryptocurrencies have argued that the tax regulations act as a blockage for normalizing use of crypto in the United States. They could act as an alternative for general payment methods. So, as far as the recent bill is concerned, it is expected to allow people to use cryptocurrencies, even for making small transactions.
Such steps receive appreciation from the crypto community. Executive director at Coin Center—Jerry Brito—said that the legislation would act as nourishing the retail crypto payments, for subscription services and other such mini transactions. Further, it would also promote blockchain infrastructure development as these small transaction fees actually makes it tough for crypto users.
Source: https://www.thecoinrepublic.com/2022/07/27/us-lawmakers-new-legislation-seeking-tax-exemption-on-small-crypto-transaction/