Bipartisan bill proposes tax exemption for small cryptocurrency transactions

Four members of Congress — two Democrats and two Republicans — have proposed a bill designed to make the everyday use of digital assets more practical.

Currently, consumers are required to report any changes in a digital currency’s value against the US dollar from the time they purchased it until it is used in a transaction. This is counted as taxable income.

The Virtual Currency Tax Fairness Act would exempt personal transactions made with digital currency when the gains are $200 or less. Rep. Suzan DelBene (D-Wash.) and David Schweikert (R-Ariz.) introduced the bill on Thursday.

DelBene said in a statement that the US tax code must evolve to support growth in the digital economy.

“Antiquated regulations around virtual currency do not take into account its potential for use in our daily lives, instead treating it more like a stock or ETF,” she said. “However, virtual currency has evolved rapidly in the past few years with more opportunities to use it in our everyday lives.”

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