US lawmakers are now planning to bring exemption to use crypto assets more preferably under small amounts of transactions.
Right now almost every country has its own rules and regulations on the crypto industry. Even though few countries have not created a legislative framework for the crypto industry, but still, they are collecting taxes from this market investors. The majority of the tax rules in this industry are based on the capital gain tax but rules are equally applicable for all traders, whether they are a very small or very big number of traders.
Virtual Currency Tax Fairness Act of 2022, drafted on 1 February by Suzan DelBene, Washington Representative, aimed to bring small crypto traders activities of low amounts crypto transactions tax-free.
Suzan took the reference of Code of 1986, which keeps the citizens away from the taxes from their personal financial transactions with the use of crypto-assets. If this law will get introduced successfully into effect, then it will stop Internal Revenue Service (IRS) to grab taxes from the crypto traders using $200 worth of crypto transactions or below.
“Antiquated regulations around virtual currency do not take into account its potential for use in our daily lives, instead of treating it more like a stock or ETF.”
Suzan also asserted that the crypto industry is evolving fastly and in the past few years it changed much, so our laws also needed to step with the evolving market so that we can stay at the top.
“Virtual currency has evolved rapidly in the past few years with more opportunities to use it in our everyday lives. The U.S. must stay on top of these changes and ensure that our tax code evolves with our use of virtual currency.”
Earlier, in 2017, David Schweiker, Washington official, proposed a bill to allow crypto traders to avoid tax from transactions below $600.
In 2020, two US lawmakers proposed the same bill with the threshold of $200 and asserted that current situations are under the need of such small transactions for crypto traders.
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