U.S.-based crypto think tank Coin Center celebrated the introduction of the Virtual Currency Tax Fairness Act of 2022 in the Senate which is aimed at improving the daily use of crypto assets. Filed by U.S. Senators Pat Toomey and Kyrsten Sinema, this act is a new version of the same name bill filed in the U.S Congress.
Related Reading | DeFi TVL Sheds $5 Billion As Tokens Record Double-Digit Losses
Coin Center has been pushing for reducing friction for people using cryptocurrencies in their everyday life. As the organization explained, digital assets transactions create “taxable events”.
This means people need to calculate, report, and pay taxes on crypto transactions. Under the new act filed by Toomey and Sinema, these operations would be free up to a certain threshold and provide people with more tax treatment clarity for Bitcoin and other cryptocurrencies.
The act was specifically created for people looking to spend their crypto in their daily routine, to pay for small services or products. Coin Center wrote the following on the implications of the Virtual Currency Tax Fairness Act reaching law status:
This easy solution to an obvious problem with today’s tax treatment of cryptocurrencies would help level the playing field for this technology (…). This bill is an important piece of our crypto tax agenda in Congress.
As the organization explained, the act proposes that cryptocurrencies receive a similar treatment as foreign currencies. Coin Center claimed this legislation is the first bi-partisan and bi-cameral effort regarding the crypto industry.
In 2017, the think tank helped U.S. Representatives David Schweikert and Jared Polis introduced the Virtual Currency Tax Fairness bill in Congress. Today, the bill has been re-introduced by Schweikert, Tom Emmer, and Suzan DelBene. Coin Center added:
(…). We look forward to continuing to work to support and promote this policy agenda to ensure clarity in the area of crypto of tax treatment.
The Coin Center press release does not mention the specific limit for crypto transactions to be protected under the act. A separate report from CoinDesk claims the limit will be set at $50 which would be a considerable reduction from the 2017 legislation project.
At that time, U.S. Representatives Schweikert and Polis proposed that any transaction under $600 would be exempt from the capital gains tax regulations. Despite the limit reduction, the act seems poised to face obstacles from U.S. legislators.
Many have been outspoken about their opposition to cryptocurrencies and digital assets. Jerry Brito, executive director of Coin Center, said the following about the newly introduced act:
This would foster use of crypto for retail payments, subscription services, and micro transactions. More importantly, it would foster the development of decentralized blockchain infrastructure generally because networks depend on small transaction fees that today saddle users with compliance friction.
Related Reading | Crypto Gets Seal Of Approval From US Politicians And British Monetary Association
At the time of writing, BTC’s price trades at $20,900 with a 5% loss in the last 24 hours.
Under current federal legislation, providing such services remains tightly regulated, effectively excluding many businesses, particularly small independent operators, from the benefits of conventional banking.
BrianAstar Network and Startale Labs, both Singapore-based entities, have entered into an agreement with KDDI Corporation, a Japanese telecommunications company, to explore collaboration in the Web3 domain.
JoyAmidst a backdrop of rising optimism for Bitcoin ETFs and regulatory shifts, Lyn Alden argues that the anonymity of Bitcoin's creator, Satoshi Nakamoto, fortifies the cryptocurrency's foundational tenets of decentralization. Alden's perspective adds another layer to the evolving narrative of crypto legitimacy.
YouQuanBlockchain security experts are raising concerns about the Safereum project's developers, who have reportedly sold off a significant amount of their native token after the project successfully concluding a $600,000 fundraising campaign.
AaronMicrosoft recently announced intentions to invest a significant A$5 billion ($3.2 billion) to strengthen its presence in the Australian market.
Hui XinOnly one region has seen an increase in crypto adoption- but how sustainable is it?
ClementAccording to DTCC’s spokesperson, appearing on the list is not indicative of an outcome for any outstanding regulatory or other approval processes.
CatherineBlackRock has agreed to pay the $2.5 million fine in a bid to resolve the charges brought forth by the SEC.
KikyoRecent transfers of substantial digital assets from #FTX and #Alameda wallets to #Binance and #Coinbase have sparked speculation about potential asset sales, amid concerns over the upcoming Bitcoin ETF.
BrianBlockFi has made an announcement of significant importance, allowing the submission of withdrawal requests from both US and international users.
Catherine