Currently, any gain obtained from the sale of cryptocurrencies must be reported as a taxable income in the US regardless of the size or purpose of the transaction. Such kind of reporting on micro-transactions makes cryptocurrencies appear dull and stagnates the overall growth of the digital asset economy.

In light of this, US lawmakers <a href="https://delbene.house.gov/news/documentsingle.aspx?DocumentID=3035" target="_blank" rel="nofollow noopener">reintroduced</a> the Virtual Currency Tax Fairness Act on Monday that would exempt consumers from paying taxes on personal crypto transactions under $200. If it becomes law, the legislation would apply to all qualifying transactions from Dec. 31, 2021.

An amendment to the Internal Revenue Service's tax code, the bipartisan bill was co-authored by Representatives David Schweikert and Suzan DelBene co-sponsored by Congressmen Tom Emmer and Darren Soto.
<blockquote><em>“Antiquated regulations around virtual currency do not take into account its potential for use in our daily lives, instead treating it more like a stock or ETF. However, virtual currency has evolved rapidly in the past few years with more opportunities to use it in our everyday lives.</em> <em>The US must stay on top of these changes and ensure that our tax code evolves with our use of virtual currency,” </em>DelBene said in a statement.</blockquote>
<h3><strong>Boosting Crypto Adoption </strong></h3>
Jerry Brito, the chief executive of the crypto think tank Coin Center who played a key role in the drafting of the legislation believes that tedious reporting requirements transactions ranging from $0.99 to $10,000 'create friction' where consumers would naturally prefer other modes of digital transactions. With the new bill, cryptocurrencies will be treated much like foreign currency.
<blockquote>The legislation aims to<em> "relieve users from having to keep track of small personal transactions ... Not only will this create a level playing field for digital currencies, it will also help unleash innovation on applications like micropayments, which can consist of dozens of transactions per minute and thus are difficult to square with the current law,"</em> Brito added.</blockquote>
https://twitter.com/jerrybrito/status/1489291098572959745

The legislation seeks to amend the Internal Revenue Code of 1986 in a push to boost the adoption of cryptocurrencies as a payment method in the US.

US Lawmakers Introduce New Bipartisan Crypto Tax Bill

The U.S. lawmakers introduced a new bipartisan bill that would exempt consumers from paying taxes on personal crypto transactions under $200.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

US Lawmakers Introduce New Bipartisan Crypto Tax Bill

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