Two senators in the US have joined forces for a new cryptocurrency bill. Accordingly, Senator Patrick Toomey and Kyrsten Cinema aim to provide tax exemption to crypto transactions up to a certain extent. According to the senators’ bill, that rate is currently $50. So if the law is passed, investors in the US will not pay taxes on Bitcoin and altcoin transactions up to $50. However, similar bills have been passed in the US Senate before. Tax exemption up to a certain amount was previously offered with 2 offers. However, there is still little sign that they will become law until soon.
New cryptocurrency bill from senators
A new bill aimed at reducing taxes on small crypto payments has entered the US Senate. The bill was revealed in an announcement Tuesday. Accordingly, the new law was given to the US Senate by Senators Patrick Toomey and Kyrsten Cinema. The bill proposes that investors be exempt from tax on crypto transactions up to $50. Currently, the US Internal Revenue Service does not consider crypto assets as property and crypto transactions as payments. Instead, it treats cryptocurrencies as investments. This means that Americans face taxes every time they exchange or sell their cryptocurrencies. So investors have to track and pay their capital gains taxes. The aforementioned situation significantly hinders mainstream trading with cryptocurrencies. Many critics and regulators oppose the use of crypto as money for this reason.
The new bill, called the Virtual Currency Tax Justice Act, brings some changes. Accordingly, it aims to exclude small crypto transactions from capital gains tax requirements. If the bill passes and becomes law, transactions under $50 will not be taxed. However, the $50 limit will be regulated by the government depending on the inflation rate. As we reported as Kriptokoin.com, various bills such as tax exemption for transactions under $ 200 in the past have also come to congress. In June, Senators Kirsten Gillibrand and Cynthia Lummis introduced a comprehensive crypto bill that seeks to reduce taxes on all crypto transactions under $200, among many other things.
Will the bill become law?
Cryptocurrency lobbies and the community are widely supportive of efforts to exempt small crypto transactions from capital gains taxes. However, the odds of any bill becoming law in the US by the end of this year are relatively low. The current legislative calendar full of non-crypto-related issues comes to an end before the midterm elections expected in November. Additionally, Senator Toomey will not run for reelection. So it won’t be there to force the bill to become law at the next congress.
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