The US Senators Patrick Toomey (R-Pa.) and Kyrsten Sinema (D-Ariz.) introduce the Virtual Currency Tax Fairness Act (VCTFA). The VCTFA bill makes transactions below $50 tax-free for crypto users.
Sen. Toomey believes cryptocurrencies can also be a part of Americans’ daily life, if tax and regulatory clarity follows.
“While digital currencies have the potential to become an ordinary part of Americans’ everyday lives, our current tax code stands in the way,” says Senator Toomey.
The VCTFA bill would allow crypto users to “use cryptocurrencies more easily as an everyday method of payment by exempting from taxes small personal transactions like buying a cup of coffee.”
Exempted also would be the trades that take place in-between the cryptocurrency and fiat currency. Also, “all sales or exchanges which are part of the same transaction (or a series of related transactions) shall be treated as one sale or exchange.”
Prominent crypto-industry entities, such as Coin Center, the Blockchain Association, and the Association for Digital Asset Markets support the VCTFA bill.
Jerry Brito, executive director, Coin Center, says, “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.”
Also Read: Sen. Gillibrand: We Need Crypto Regulation with ‘More Urgency’
