Republican Senator Pat Toomey of Pennsylvania and Democrat Senator Kyrsten Sinema of Arizona are proposing a new law that would exempt small personal crypto transactions from taxation.
Under the current system, people who use digital assets to pay for goods and services owe capital gains taxes when the value of the coin increases.
The Virtual Currency Tax Fairness Act introduced by Toomey and Sinema on Tuesday aims to change that by introducing a de minimis exemption for everyday crypto transactions.
The bill will exclude personal crypto transactions worth less than $50 or with gains under $50 from being subjected to capital gains tax.
Reads the proposed law,
“A bill to amend the Internal Revenue Code of 1986 to exclude from gross income de minimis gains