Toomey explained that he is working with Sinema to exempt tax on small personal transactions to facilitate cryptocurrency payments. Lawmakers like John Bel Edwards recognize the great potential in the technology and would like to exploit it.
US senators Pat Toomey of Pennsylvania and Kyrsten Sinema of Arizona introduced a bill to exempt small transactions with cryptocurrencies from taxes. The Virtual Currency Tax Fairness Act aims to eliminate capital gains tax on purchases under USD 50.
Toomey said the new legislation focuses on making the use of digital payments for everyday purchases easier. He stated that citizens using cryptocurrencies are not subject to surprise taxes for smaller value payments.
The lawmaker explained that the current tax code stands in the way, although cryptocurrencies can become part of the daily economy. He pointed out that he is working with Sinema to facilitate payments with cryptocurrencies by exempting tax on small personal transactions.
The draft law will eliminate capital gains tax on transactions under USD 50, including goods and services. Although Congress has not yet passed the legislation, it is a welcome step toward cryptocurrency adoption in the United States.
The new bill adds to others recently introduced, one by senators Kyrsten Sinema and Cynthia Lummis. That represents an effort by those seeing potential in crypto assets to encourage their adoption in the US.
Crypto Banknotes on the Rise in the United States
Many lawmakers want to focus on the positive aspects of the crypto industry as the US accelerates the process of its regulation. They recognize the great potential in the technology and say they would like to exploit it. For example, John Bel Edwards, the governor of Louisiana, signed a bill on crypto custody into law in late June.
Senators Cynthia Lummis and Kirsten Gillibrand also worked on a cryptocurrency bill focused on DeFi and DAOs. It aims to protect consumers, encourage financial innovation, and remove some cryptocurrencies from the jurisdiction of the SEC and the CFTC.
General Regulation on Cryptocurrencies Is under the Spotlight
Lawmakers control cryptocurrencies, but full regulation may not occur until 2023. Congress postponed the bill on stablecoins by the House Financial Services Committee until September 2022, and other draft laws may not arrive until next year.
The regulation on cryptocurrencies seems to be occurring in the US, which will influence the market. However, the government seems to want to encourage the development of responsible innovation.
The relevance of cryptocurrencies is increasingly evident in the economy, which lawmakers do not overlook. The bill introduced by senators Pat Toomey and Kyrsten Sinema is only one example of the efforts to adopt that technology.
Bitcoin (BTC) is trading at around USD 21,325 and has accumulated a 1.1% gain over the last 24 hours. Its daily trading volume is above USD 45.88 billion, while its market capitalization is about 407.42 billion, according to CoinGecko.
By Alexander Salazar
