Regulation
Major Tax Reform Bill Introduced in U.S. Senate
Another major cryptocurrency tax bill has been introduced in the U.S. Senate, as regulation of the sector takes center stage this election.
Coin Center, US Senators on Cryptocurrency Tax Bill
Jerry Brito, executive director of Coin Center, noted that the Virtual Currency Tax Fairness Act was introduced with bipartisan sponsorship. Notably, this is the second time it has been in the Senate today.
This bill seeks to create a “sensible de minimis exemption” from capital gains tax for low-value cryptocurrency transactions in everyday use. This is quite similar to the exemption that exists for foreign currency.
The Virtual Currency Tax Fairness Act was introduced in the Senate today for the second time with bipartisan sponsorship. The bill would create a reasonable de minimis exemption from capital gains tax for low-value cryptocurrency transactions in everyday use, much like the…
— Jerry Brito (@jerrybrito) July 25, 2024
The Coin Center executive emphasized his company’s advocacy of such solutions over the years. Therefore, they engaged some senators to get the bill introduced in the Senate. Sponsors include Senator Ted Budd, Senator Kyrsten Sinema, Senator Cynthia Lummis, and Kirsten Gillibrand.
Thanks to a collective effort, the bill became the first bipartisan, bicameral cryptocurrency legislative effort that even touches on taxation.
US Senators Fight for Robust Cryptocurrency Regulation
It is noteworthy that these senators are among the leading advocates for clear regulation of cryptocurrencies. To a large extent, Senator Lummis has pushed the United States to embrace cryptocurrencies wholeheartedly.
He once criticized the Department of Justice (DOJ) for its interpretation of regulations related to non-custodial software wallets. This follows the DOJ filing criminal charges against developers associated with the Bitcoin mixer Samourai Wallet and the Tornado Cash.
Soon after approval by the Securities and Exchange Commission (SEC) Spot Ethereum ETFsSenator Lummis has been pushing Congress to establish a clear cryptocurrency regulatory framework for industry. Its call for congressional action came amid concerns about market volatility and consumer protection.
The duo has spearheaded a couple of other cryptocurrency bills in the past. Both lawmakers have introduced significant legislation aimed at regulating stablecoins.
Overall, their commitment reflects the progress made towards clear regulation in the cryptocurrency ecosystem.
To know more: Chevron Winning Lawyer Paul Clement Joins Coinbase Board