The US Senate has introduced for consideration a bill intended to exempt crypto transactions up to $50 in equivalent value from capital gains tax.
The bill’s authors are Senators Pat Toomey and Kirsten Sinema.
If enacted, the bill would exempt small crypto purchases from capital gains taxation. The $50 threshold could be adjusted in the future for inflation.
The bill does not apply to transactions between digital assets and fiat. It proposes that “all sales or exchanges that are part of the same transaction (or series of related transactions) should be treated as a single sale or exchange”.
Currently, cryptocurrency users in the United States are legally required to report income from digital asset transactions. In other words, regulators treat cryptocurrency primarily as an investment instrument rather than as a means of payment.
The community, notably Coin Center, the Blockchain Association and the Association for Digital Asset Markets, has backed the senators’ initiative.
The Virtual Currency Tax Fairness Act of 2022 was introduced with bipartisan sponsors in the Senate today. https://t.co/U3lVEQp22R
— Coin Center (@coincenter) July 26, 2022
As noted, the $50 threshold for crypto taxation also appears in the Responsible Financial Innovations Act, which the same senators introduced in June.
Earlier, one of its authors, Cynthia Lammis predicted the bill’s passage in 2023.
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