Republican Senator Pat Toomey of Pennsylvania and Democratic Senator Kyrsten Sinema of Arizona are proposing a new law that would tax small personal cryptocurrency transactions.
Under the current system, people who use digital assets to pay for goods and services owe capital gains taxes when the currency’s value rises.
The Virtual Currency Tax Fairness Act, introduced by Toomey and Sinema on Tuesday, aims to change that by introducing a de minimis exemption for daily cryptocurrency transactions.
The bill will exclude personal cryptocurrency transactions worth less than $50 or profits less than $50 from being subject to capital gains tax.
read the invoice
“A bill to amend the Internal Revenue Code of 1986 to exclude from gross income de minimis gains from certain sales or exchanges of virtual currency and for other purposes.”
To prevent abuse of the exemption, the bipartisan design also includes an aggregation rule, which states that all sales and deals that are part of the same transaction will be treated as one.
Toomey says the project will remove an obstacle preventing wider adoption of crypto assets.