Representatives Introduce Pro-Bitcoin Bill
Rep. Jared Polis and Rep. David Schweikert, Co-chairs of the Congressional Blockchain Caucus, introduced a Cryptocurrency Tax Fairness Act earlier this month. This piece of legislation is aimed to fix a standard in 2014, where the IRS classified digital currency as property. Even the smallest of cryptocurrency transactions are classified the same as buying or selling stock, under this code. This has dis-incentivized the growth of consumers using virtual currencies to pay for goods and services.
This bipartisan legislation creates a better structure for taxing purchases made with cryptocurrency. Similar to foreign currency transactions, it would allow customers to make small purchases with cryptocurrency up to $600 without reporting requirements.
“Individuals all over the world are starting to use cryptocurrencies for small every day transactions, yet here in the States we have fallen behind and make cryptocurrency use more of a challenge than it needs to be. With this simple legislative change, anyone can make digital payments to buy a newspaper or a bike without worrying about tax code challenges.”
Polis and Schwikert relaunched the Congressional Blockchain Caucus earlier this year. They hope to provide research to help policymakers implement smart regulation that doesn’t stunt the growth of blockchain technologies. Their vision is a hands off approach to regulation, similar to the evolution of the internet.
With uncertainty surrounding future regulation of blockchain technology in the United States, it is good to see a pro-crypto group of legislators among the few that are productive in congress.