US lawmakers reintroduce bill to exempt crypto trading below $200

US Representative in Washington Suzan DelBene has reinstated a previously tabled bill aimed at exempting crypto users from taxes on transactions under $200.

Suzan Del Bene

Dubbed the Virtual Currency Tax Fairness Act of 2022, the bill aims to amend the Internal Revenue Code of 1986 to eliminate tax collection from certain individual cryptocurrency transactions.

If signed into law, the measure could prevent the Internal Revenue Service (IRS) from requiring US lawmakers. tax advisors to pay taxes on capital gains from transactions of $200 or less.

“The archaic regulations surrounding virtual currencies do not consider their potential use in our daily lives, but rather treat them like a stock or an ETF. The virtual currency has grown rapidly in recent years and offers many opportunities to use it in everyday life. The United States needs to update these changes and ensure our tax laws evolve as we use virtual currencies.”

In 2017, Rep. David Schweiker proposed legislation to exempt crypto transactions below $600 and co-authored the current version with DelBene. The two lawmakers reintroduced the bill of the same name in 2020, lowering the threshold to $200. Crypto officials Darren Soto and Tom Emmer co-sponsored the 2020 law, as well as the most recent iteration.

“As consumers increasingly use cryptocurrencies to complete everyday transactions, we need to modernize their tax treatment. This bill will eventually allow Americans to use digital wallets as seamlessly as cash,” Emmer said.

With tax season approaching in the United States, many users are responsible for reporting profits from holdings. However, ordinary people do not yet pay capital gains tax while still HODL, only when they sell, trade or transfer tokens. The draft law proposes changes to the tax law that would apply to transactions made after December 31, 2021.

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