US House Representatives Propose Tax Relief Bill for Small Crypto Transactions
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Members of the U.S. House of Representatives are proposing a bipartisan bill that would create a taxing structure for crypto assets and provide relief for those who use digital assets in small transactions.
According to a government press release, Democratic Congresswoman Suzan DelBene of Washington and Republican Congressman David Schweikert of Arizona are introducing the Virtual Currency Tax Fairness Act of 2022, a bill that would exempt personal transactions made with digital assets as long as the gains are $200 or less.
Currently, all gains made from crypto assets must be reported as taxable income regardless of the transaction’s size or purpose.
As Representative DelBene says,
“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 (exchange-traded fund). However, virtual currency has evolved rapidly in the past few years with more opportunities to use it in our everyday lives.
The US must stay on top of these changes and ensure that our tax code evolves with our use of virtual currency. This commonsense bill cuts the red tape and opens the door to further innovations, ultimately growing our digital economy.”
The bill, which has two co-sponsors, was first proposed in 2020, but never gained traction.
According to Representative Schweikert, the legislation could serve as the foundation for the country’s burgeoning virtual marketplace.
“Virtual currency is reshaping our everyday lives, and the United States needs to recognize this and work to treat these currencies fairly in our tax code. This legislation is an important step forward, and it lays the groundwork for growing the digital economy.”
If approved, the bill will cover transactions after December 31st, 2021.
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