I just came across this news today!
The senator who has been in forefront of advocating for bitcoin strategic reserve and better crypto policies.
She has once again introduced a new bill that should update the tax code on digital assets. This happened after the federal budget was passed without a single mention of cryptocurrencies.
Key Focuses of the document:
1. Exemption of Tax for Small Transactions: transactions below $300 will be tax free with a yearly maximum of $5000
2. Deferral of taxes of mining and staking until the moment of assets sale. This addresses the issue of double taxation.
3. Tax Exemptions for crypto loans and charitable contributions in digital assets.
https://coingape.com/lummis-bill-simplifies-crypto-tax-compliance/She believes this will help promote innovation, reduce bureaucratic hurdles and clarify the obligations of tax payers for digital assets.
These changes when implemented will help maintain the US Competitive edge in digital economy.
These sort of bills are a double edged sword - they're great for making Bitcoin more mainstream as a financial instrument. It will allow institutions to trade it more easily, because there are defined regulatory frameworks in place on how things should be declared when it comes to cryptocurrency, as grey areas often present a no-go for companies that really watch their reputation. However on the other side, it's going to increase enforcement and result in a drop in anonymity, which is what many people in the crypto space claim it should be about. Frankly, you can be legit and still make plenty of money in this space, but you have to pay attention to new laws like these - or at least use an accountant that is fully aware of them - when declaring your finances or you can fall foul of an expensive fine.
Everything has its pros and cons, just like BTC ETFs being approved, or large institutions and companies investing and holding large amounts of bitcoin, there are pros and cons.
What is more important is that whether we like it or not, whether we oppose it or not, bills are inevitable. Sooner or later, the government will issue more regulations and bills to manage and control us more . That's what they've been doing for hundreds of years with everything in this world. It's all a matter of time, so if we can't prevent it, we shouldn't try to fight it, but instead find ways to adapt .
