The US has recently released the Crypto Tax Fairness act in order to boost adoption and increase its use as a payment medium. This act is the US lawmaker’s goal to make cryptocurrencies a more legitimate part of the economy. It can also become a thing that other countries follow, and hence the position of crypto gets better worldwide. India is one of those countries that could draw some inspiration from the same.
The need Crypto Tax Fairness Act
The bill was introduced by Suzan DelBene and David Schweikert on Thursday and was supported by Congressmen Dareen Soto and Tom Emmer. Unlike India’s taxation system, which has introduced a flat system rate for crypto tax, this act could design a proper structure for the same. The structure will actually make it feasible for investors to make use of cryptocurrencies in various ways.
The importance of this act is understandable when we take a look at the current crypto legislation in the US. Just like in India, a user must report any type of crypto transaction where he/she has made a capital gain. And this includes even small things like paying for a meal or coffee with crypto. This is basically saying don’t use crypto for investors; it is not practical to keep track of microtransactions.
So, in order to keep the growth of the digital world on the right track and promote the use of cryptocurrencies, the crypto fairness tax act has been introduced.
What does the new Tax act bring?
This new act will exempt any transaction that is made where the capital gains are less than $200. This basically means that crypto users won’t have to keep track of their microtransactions and also save tax. If this bill wasn’t introduced, it would have made the widespread adoption of crypto impossible just because of the simple fact that tracking 1000s of transactions every year is impossible. Jerry Brito says that the idea is to treat crypto like foreign currencies with this new bill.
With the price of Bitcoin above $40k and this positive regulation, I think it’s time to be bullish. What are your thoughts as the US releases the Crypto Tax Fairness Act to boost crypto adoption? And do you think this will increase its use as a payment option? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.