Two US Senators Have Introduced A Bill To Buy Products With Bitcoin And Exempt BTC Transactions Under $50 From Capital Gains Tax.
Two pro-crypto US senators want the taxman to stay away from small BTC transactions.
Cryptocurrencies have gained a significant following and courted serious attention over the last few years. Today, even some financial institutions and governments are pro-crypto – especially Bitcoin. However, there have been a few hurdles introduced by the authorities in terms of taxation, especially in the US. People who conduct crypto transactions are required to pay capital gains tax.
However, two US senators are now tabling a bill “that would allow consumers to buy items with Bitcoin” and could see those who conduct Bitcoin transactions of under $50 relieved from the tax burden. The two senators are Pat Toomey of Pennsylvania and Krysten Sinema of Arizona. News of the bill was reported by CNBC’s Squawk Box.
. @SenToomey and @SenatorSinema are introducing a bill that would allow consumers to buy items with #Bitcoin without having to pay a capital gains tax to encourage more public adoption of #crypto. @ylanmui reports: pic.twitter.com/JY3AdbcMrD
— Squawk Box (@SquawkCNBC) July 26, 2022
According to the two bill backers, the tax exemption is meant to boost Bitcoin adoption among Americans and enable the use of BTC payments for micro-transactions, digital payments, and even service subscriptions.
Senator Toomey said,
“While digital currencies have the potential to become an ordinary part of Americans’ everyday lives, our current tax code stands in the way.”
The bill has the backing of major entities in the crypto industry, including the Bitcoin Association, Coin Center, and the Association for Digital Asset Markets.
Granted, a tax exemption for small Bitcoin transactions would encourage adopting and using crypto payment provisions in various economic sectors. This would be a huge plus for the top coin as more Americans would learn about it and adopt it in their day-to-day financial transactions.
This bill comes even as the US SEC waddles the stormy waters of the crypto industry in search of the best means to regulate it. The authorities and the SEC have long been pressured to formulate proper policies to govern cryptos. The taxation angle introduced by the two senators could be a great starting point.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.