US Lawmakers Introduce ‘Virtual Currency Tax Fairness Act’ to Increase Cryptocurrency Use for Payments – Regulation Bitcoin News
[ad_1]
Several U.S. lawmakers have launched the Virtual Currency Tax Fairness Act to strengthen “the legitimacy of cryptocurrency in our digital economy.” The invoice additionally goals to broaden the usage of cryptocurrencies for funds.
Virtual Currency Tax Fairness Act Introduced within the US
Representatives Suzan DelBene and David Schweikert launched 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 structure for taxing purchases made with virtual currency, also known as cryptocurrency,” the lawmakers defined. It can even broaden the usage of cryptocurrency for funds and additional strengthen “the legitimacy of virtual currency in our digital economy.”
The present laws states that any crypto features have to be reported as taxable earnings whatever the dimension or function of the transaction, the lawmakers pressured, emphasizing that “This includes purchases as small as buying a cup of coffee.”
Asserting that the present regulation “makes the everyday use of virtual currency near impossible, discouraging people from using it, and inhibiting the growth of our digital economy,” the lawmakers detailed:
The Virtual Currency Tax Fairness Act would exempt private transactions made with digital foreign money when the features are $200 or much less.
Jerry Brito, government director of cryptocurrency suppose tank Coin Center, defined: “Today you have to keep track of and report every transaction you make using them, whether it’s a $10,000 investment trade or whether you’re buying a 99¢ song online or a latte at a cafe.” He elaborated:
This clearly creates friction and places cryptocurrencies at a drawback relative to different digital cost strategies.
The invoice would “treat cryptocurrencies similarly to how foreign currency is now treated,” Brito famous.
Rep. DelBene commented:
Antiquated laws round digital foreign money don’t consider its potential to be used in our each day lives, as a substitute treating it extra like a inventory or ETF.
“This commonsense bill cuts the red tape and opens the door to further innovations, ultimately growing our digital economy,” she concluded.
What do you concentrate on the Virtual Currency Tax Fairness Act? Let us know within the feedback part beneath.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational functions solely. It will not be a direct provide or solicitation of a proposal to purchase or promote, or a suggestion or endorsement of any merchandise, companies, or firms. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the writer is accountable, instantly or not directly, for any harm or loss brought on or alleged to be brought on by or in reference to the usage of or reliance on any content material, items or companies talked about on this article.
[ad_2]
Source link