Bitcoin and Ethereum, the two biggest cryptocurrencies, soared this week, followed by prices soaring U.S. Employment Report Much Stronger Than Expected..
The price of Bitcoin, which dropped sharply from a peak of about $ 70,000 per Bitcoin at the end of last year, Bounced off the $ 32,000 low in January, Soared above $ 40,000. Ethereum prices have also skyrocketed, rising 20% from last week.
Now, a bipartisan group of US members of the Diet has reintroduced a bill that exempts people from paying less than $ 200 in taxes on Bitcoin and cryptocurrency payments, called a “significant step forward” by one member.
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“Cryptocurrency Tax Fair Law” -Revision of Internal Revenue Service Tax Law .. .. [+]
“Cryptocurrencies are changing our daily lives, and the United States must be aware of this and strive to treat these currencies fairly in tax law,” said MP David Schweikert (R-Ariz.). It states as follows. statement.. “This law is an important step forward and lays the foundation for the growth of the digital economy.”
The Cryptocurrency Tax Fair Act (Revision of the Internal Revenue Service’s tax law), designed to simplify the tax burden on daily crypto users who must report even the slightest capital gains, is a crypto-friendly representative. Schweikert, Suzan DelBene (D-Wash.), Darren Soto (D-Fla.), Tom Emmer (R-Minn.), All eligible after December 31, 2021 if the law is enacted. It applies retroactively to the transaction.
Emmer, Schweikert, and Soto are co-chairs of the Congressional Blockchain Caucus, a parliamentary group that currently has 35 members.
“This not only creates a fair competition for digital currencies, but also helps unleash innovations in applications like micropayments. Micropayments can consist of dozens of transactions per minute. That’s why it’s difficult to match current legislation, “says Jerry Brito. Managing director of the cryptocurrency think tank coin center, which is lobbying for the bill.
Currently, Bitcoin and crypto users need to report in dollars the change in the value of cryptocurrencies from the time they buy the crypto to the time it is used in transactions, including small retail purchases.
“Bitcoin and other cryptocurrencies are technologically innovative payment methods, but today they are a $ 10,000 investment transaction, whether you buy 99 cents of songs online or latte. , All transactions made using them must be tracked and reported. Cafe, “Brit added. “This obviously creates friction and puts cryptocurrencies at a disadvantage compared to other digital payment methods.”
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After a period of Bitcoin stagnation, Bitcoin prices soared 10% last week, .. .. [+]
Bitcoin and many other cryptocurrencies have gained a reputation as speculative investments in recent years due to soaring prices and few companies accepting Bitcoin as a payment method.
Bitcoin prices have skyrocketed by 300% over the past two years and Ethereum prices have been even faster as demand for blockchain-based decentralized finance (DeFi) and collectable non-fungible tokens (NFTs) has exploded. It rose in.
Technological developments such as the support of the second-tier Bitcoin Lightning Network, which enables faster and cheaper Bitcoin payments, and the support of Meme-based Bitcoin rival Dogecoin’s Tesla billionaire Elon Musk are the use of crypto payments. The case has been strengthened. Last month, Tesla began allowing people to use Dogecoin to buy branded merchandise.
“As the use of cryptocurrencies for retail payments increases, it’s important for Americans to be able to easily understand their tax obligations,” said Christine Smith, Executive Director of the Blockchain Association. “By providing tax exemptions for daily small purchases, the Cryptocurrency Tax Fair Act will reduce this burden on consumers.”
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