Bill to promote daily use of virtual currency with tax exemption

'Cryptocurrencies can become a part of everyday life, but the current tax system is blocking it,' he said, to simplify the use of cryptocurrencies in everyday shopping, 'Virtual Currency Tax Fairness Act (Cryptocurrency Taxation Fair Law) ”Bill has been submitted to the US Senate.

Toomey and Sinema Introduce Bipartisan Legislation to Simplify Use of Digital Assets for Everyday Purchases | United States Committee on Banking, Housing, and Urban Affairs

Bipartisan Bill Seeks to Eliminate Taxes on Crypto Transactions Under $ 50 --Decrypt
https://decrypt.co/106006/bipartisan-bill-seeks-to-eliminate-taxes-on-crypto-transactions-under-50

The bill was submitted by Senator Pat Toomey (Republican) and Kyrsten Sinema (Democrat), members of the Senate Banking Commission.

According to Congressman Toomy, the cryptocurrency tax fair law 'makes it easier for Americans to use cryptocurrencies as a daily payment method by exempting small personal transactions such as buying coffee.' thing.

Under current law, every time you use a virtual currency, a taxable event will occur. In the example above, if an individual buys coffee in cryptocurrencies, and the value of the cryptocurrencies increases, he can get capital gains from the transaction.

The bill is a virtual currency for daily transactions by exempting taxation for cases where personal transactions of less than $ 50 (about 6900 yen) are carried out and cases where profits of less than $ 50 are generated in personal transactions. It simplifies usage.

As a countermeasure against malicious businesses trying to evade taxes using the exemption mechanism, the bill includes a counting rule that treats 'sale or exchange of part or all of the same transaction' as 'one sale or exchange'. It is.

This bill is a revised version of the bill submitted by Representative Susan Delbene (Democratic Party) and Representative David Schweikert (Republican Party) in February 2022. Reps Delbene and Schweikert submitted a bill of the same name in January 2020, but it was not adopted at that time.

By the way, the Senate is discussing a bill called the 'Responsible Financial Innovation Act' submitted by Senator Cynthia Lummis (Republican Party) and Senator Karsten Gilibrand (Democratic Party). This bill is also related to virtual currencies and states that 'the obligation to provide information to the Internal Revenue Service for profits of 200 dollars (about 27,000 yen) or less from virtual currency transactions' is stated. At the same time, it is like giving supervisory authority related to virtual currency to the Securities and Exchange Commission instead of the Internal Revenue Service. However, according to Decrypt, a news site that handles cryptocurrency information, it is unlikely that it will be passed.

Senate Bill Would End SEC's Oversight of Most Crypto, Create $ 200 Tax Exemption --Decrypt
https://decrypt.co/102180/lummis-gillibrand-bill