US senators Patrick Toomey for Pennsylvania and Kyrsten Sinema for Arizona have come together to propose a bill that will allow crypto transactions below $50 to be tax-free. This new legislation was introduced as the Virtual Currency Tax Fairness Act.
The idea behind introducing the bill is to make everyday transactions easier and to induce cryptocurrencies into daily life so that citizens “aren’t subjected to surprise taxes when using digital currency for lower-value payments.” In fact, for the past two Congressional sessions, there has been a similar bill with the minimal reporting to be $200. Senator Toomey said:
“While crypto has the potential to become part of our everyday lives, the current tax code stands in the way… [Senator Sinema and I] are teaming up to make it easier to use digital currencies as a common method of payment by exempting from taxes small personal transactions.”
Although the bill has now been introduced, it still needs to be approved. However, it is a very constructive movement for the US. Furthermore, there have been other crypto bills recently introduced, one of which is a bill Senator Sinema and Senator Cynthia are working on.
Recently, the US has started to recognize the potential of the crypto industry and many new bills regarding it are being introduced. Lawmakers are trying to look at the positive side of it all. Decisions take time to make so it may be a while before these bills are passed.