The US Congressional bill seeks to exempt the dailycryptocurrency transactions and purchases coming from capital gains taxationhas been reintroduced.

On January 16, the said bill was introduced to the USCongress by Representatives Suzan Delbene (D-WA) and David Schweikert (R-AZ).But, if you’ll remember, Schweikert already introduced the same bill. However,the current one comes with a greater exemption.

How the Current One Differs?

Three years later, a congressional bill was reintroduced, andit is called “The Virtual Currency Tax Fairness Act of 2020. This bill isseeking to exempt the cryptocurrency expenditures that are considered to bepersonal transactions coming from capital gains taxation. This suggests thatthe users do not need to report once they used any cryptocurrency assets whosevalue had changed as per value of the USD on the daily expenses.

The current bill is aiming to address the different conflicts brought by the IRA following the agency’s statement that Bitcoin (BTC) and other crypto assets can be somewhat some form of property, back in 2014. Meaning, any small or big transactions will lead to taxable even. Then, the users are liable for the capital gains taxation.

From this IRS’s determination, a criticism was born, wherethe use of cryptocurrency is the result of involved tax burdens.

Based on the bill, taxpayers are exempted from reporting inthe case that the gains are less than $200. As for the previous bill, the usersare only exempted from reporting if the gains are slightly higher at $600.

Moreover, the bill classifies it as a gross income. The billstates, “Gross income of an individual shall not include gain, by reason ofexchange rates, from the disposition of virtual currency in a personaltransaction, (as such term is defined in section 11 988(e)). The precedingsentence shall not apply if the gain which would otherwise be recognized on thetransaction exceeds $200.”

Is It Possible for The New Act to Drive the Crypto Adoption?

In reality, the existing tax finds it hard to come up withcryptos. That is because crypto assets sometimes behave as commodities,sometimes as investments, or there are times they act as other currencies.However, the reintroduced bill will simplify everything for both crypto usersand traders. Besides, many are wondering whether or not the new act could leadto crypto adoption.

In the case that the US Congress approved the bill, thissuggests that it will cover the transactions that took place past the 31stDecember, 2019.

Coin Center, a Washington-based cryptocurrency firm,continues to exert effort towards the feasible solution in clearing the barrierto crypto adoption. It was reported that the research group collaborated withRepresentatives Schweikert and DelBene to reintroduce the idea to the attentionof lawmakers.

The research group writes, “This easy solution to an obvious problem with today’s tax treatment of cryptocurrencies would help level the playing field for this technology.”