US Senators introduce bill to make small crypto transactions tax free

To encourage broader adoption of crypto, U.S. senators on Tuesday introduced a new bill to exempt small cryptocurrency transactions or deals from capital gains taxes.

The new bipartisan law, pushed by Republican Sen. Patrick Toomey and Democratic Sen. Kyrsten Sinema, would exempt Americans from taxes every time they engage in cryptocurrency transactions. Dubbed the Virtual Currency Tax Fairness Act, the law intends to offer a tax exemption for bitcoin transactions up to $50 or trades with a net profit of up to $50.

Based on the announcement by the US Senate Committee on Banking, Housing and Urban Affairs, the new bipartisan bill intends to “simplify the use of digital assets for everyday purchases” by introducing a “tax exemption for small personal transactions.”

A representation of the virtual currency Bitcoin and small toy figures are placed on the computer's motherboard

Photo: Reuters / Dado Ruvic

The latest law will allow Americans to “more easily use cryptocurrencies as an everyday payment method by exempting small personal transactions like buying a cup of coffee from taxes,” Senator Toomey said. “While digital currencies have the potential to become a normal part of Americans’ everyday lives, our current tax code stands in the way,” he told CNBC’s Squawk Box. US Senators introduce bill to make small crypto transactions tax free

Fry Electronics Team

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