US Senators Propose Making Small Crypto Transactions Tax-Free

by in Cryptocurrency News

Senate crypto bill

US senators introduced a bill that suggests making cryptocurrency transactions under $50 tax-free. The authors of the paper are Sen. Patrick Toomey (R-Pa.) and Kyrsten Sinema (D-Ariz.) Previously, the Senate presented another bill to simplify the tax system for daily crypto users who should report even the smallest capital profits. The first bill suggested not requiring taxes on crypto payments that are below $200.

Related: Senate in Brazil Discusses Crypto Regulation Bill

At a recent session of Congress Toomey said digital currencies have the potential to become a part of Americans' daily lives, but the existing tax policy stands in the way.

The newly introduced bill allows people to use crypto more easily as a usual payment method without requiring taxes for small personal transactions such as buying a cup of coffee.

The US revenue service IRS says when you sell virtual currency, you must recognize all the capital gains or losses on the sale.