US Lawmakers Introduce ‘Virtual Currency Tax Fairness Act’ to Boost Cryptocurrency Use for Payments

US Lawmakers Introduce ‘Virtual Currency Tax Fairness Act’ to Strengthen Legitimacy of Cryptocurrency, Expand Crypto Use for Payments

Several U.S. lawmakers have launched the Virtual Currency Tax Fairness Act to strengthen “the legitimacy of cryptocurrency in our digital financial system.” The invoice additionally goals to develop the usage of cryptocurrencies for funds.

Virtual Currency Tax Fairness Act Introduced within the US

Representatives Suzan DelBene and David Schweikert introduced the “Virtual Currency Tax Fairness Act of 2022” on Thursday. The bipartisan invoice is cosponsored by Congressmen Darren Soto and Tom Emmer.

The invoice “would create a workable construction for taxing purchases made with digital foreign money, often known as cryptocurrency,” the lawmakers defined. It can even develop the usage of cryptocurrency for funds and additional strengthen “the legitimacy of digital foreign money in our digital financial system.”

The present laws states that any crypto beneficial properties should be reported as taxable earnings whatever the dimension or goal of the transaction, the lawmakers careworn, emphasizing that “This contains purchases as small as shopping for a cup of espresso.”

Asserting that the present legislation “makes the on a regular basis use of digital foreign money close to inconceivable, discouraging folks from utilizing it, and inhibiting the expansion of our digital financial system,” the lawmakers detailed:

The Virtual Currency Tax Fairness Act would exempt private transactions made with digital foreign money when the beneficial properties are $200 or much less.

Jerry Brito, government director of cryptocurrency assume tank Coin Center, defined: “Today it’s a must to hold observe of and report each transaction you make utilizing them, whether or not it’s a $10,000 funding commerce or whether or not you’re shopping for a 99¢ tune on-line or a latte at a restaurant.” He elaborated:

This clearly creates friction and places cryptocurrencies at a drawback relative to different digital cost strategies.

The invoice would “deal with cryptocurrencies equally to how overseas foreign money is now handled,” Brito famous.

Rep. DelBene commented:

Antiquated rules round digital foreign money don’t keep in mind its potential to be used in our every day lives, as a substitute treating it extra like a inventory or ETF.

“This commonsense invoice cuts the pink tape and opens the door to additional improvements, finally rising our digital financial system,” she concluded.

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