Key Insights:
- US senators push bill to make crypto transactions tax-free
- The bill is to make any transaction lower than $50 tax-free
- There are moves to regulate stablecoins in the US.
Prominent US senators are pushing a bill to make transactions tax-free that are $50 or below. The bill is to remove tracking fees on some crypto transactions in the country.
Who Are Those Senators
Sen. Patrick Toomey (R-Pa.) supports Kyrsten Sinema (D-Ariz.) and believes that the exemption of tracking taxes of small crypto transactions will support crypto as a payment method for several stores in the country. For instance, buying a cup of coffee and groceries.
This would foster the use of crypto for retail payments, subscription services, and microtransactions.
Jerry Brito, Director-Executive of Coin Center.
He further explained that, more importantly, it would foster the development of decentralized blockchain infrastructure because networks depend on small transaction fees that today saddle users with compliance friction.
It must be mentioned that a similar Virtual Currency Tax Fairness Act occurred earlier in the year and was introduced by Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.)
Senator Patrick Toomey (R-Pa.) says
While digital currencies have the potential to become an ordinary part of Americans’ everyday lives, our current tax code stands in the way. The senator has been supporting the crypto space and wishes to do so before the end of his tenure at the end of the session.
However, there may be a delay in passing the bill in the House of Representatives because of the upcoming lengthy recess in August. Though there has been some movement on an effort to regulate stablecoins, most congressional insiders estimate that crypto is unlikely to see significant progress on legislation until 2023.
