US Lawmakers Present ‘Virtual Currency Tax Fairness Act’ To Promote Digital Asset Usage

A couple of United States lawmakers have introduced the Virtual Currency Tax Fairness Act to reinforce “the legitimacy of cryptocurrency in our digital economy.” The bill intended at expanding the use of digital assets for payments.

Recently, representatives David Schweikert and Suzan DelBene proposed the “Virtual Currency Tax Fairness Act of 2022”. The bipartisan bill is cosponsored by Congressmen Tom Emmer and Darren Soto.

The lawmakers elucidated that the bill would create a workable structure for taxing purchases made with cryptocurrency. It will further expand the use of digital currencies for payments and further strengthen “the legitimacy of virtual currency in our digital economy.”

The lawmakers stressed that the present legislation mentions that any digital asset gains must be reported as taxable income irrespective of the size or reason of the transaction, emphasizing that “This includes purchases as small as buying a cup of coffee.”

Stating that the existing law

“makes the everyday use of virtual currency near impossible, discouraging people from using it, and inhibiting the growth of our digital economy.”

The lawmakers detailed,

“The Virtual Currency Tax Fairness Act would exempt personal transactions made with virtual currency when the gains are two hundred dollars or less.”

If it becomes law, the legislation would retroactively apply to all qualifying transactions from 31st December, 2021.