Patrick Toomey and Kyrsten Sinema want to exempt consumers from reporting transfers of less than $50 in value.
Buying that mythical cup of coffee using crypto might be about to get a little bit easier.
Two American senators are introducing a bill that would make small crypto transactions tax-free.
Patrick Toomey and Kyrsten Sinema want to exempt consumers from reporting transfers of less than $50 in value.
And, if a transaction generates a gain of under $50, there would be no need to inform the Internal Revenue Service.
The proposals mark a bipartisan effort between the politicians — and Toomey is the most senior Republican on the Senate Banking Committee. He said:
"While digital currencies have the potential to become an ordinary part of Americans' everyday lives, our current tax code stands in the way."
It's hoped these measures would make cryptocurrencies more practical as an everyday method of payment — that being said, no law could tackle the levels of volatility seen in major digital assets.
Bills Aplenty
A number of bills are currently working their way through Congress.
Back in June, Senators Cynthia Lummis and Kirsten Gillibrand unveiled the Responsible Financial Innovation Act.
The goal is to create clear standards across the industry, deliver well-defined roles for regulators, foster innovation, and protect consumers — giving Americans new opportunities while addressing risks.
One potentially contentious part of their act would see the U.S. Securities and Exchange Commission lose oversight on digital assets.
Both politicians argue "most digital assets are much more similar to commodities than securities" — a stark contrast to the stance taken by SEC chair Gary Gensler.
Indeed, reports from Bloomberg suggest that the SEC is now launching an investigation into whether Coinbase has allowed Americans to trade digital assets that should have been registered as securities.
Last week, the regulatory body alleged that at least nine digital assets on the exchange are securities: AMP, DerivaDEX, DFX Finance, LCX, Kromatika, Powerledger, Rally, Rari Governance Token and XYO.
The shock claims came after a former Coinbase employee was charged with the insider trading of cryptocurrencies. Ishan Wahi allegedly tipped off two men when coins were about to be listed, allowing them to collectively gain about $1.5 million.
Coinbase's stance toward this latest SEC probe is clear: It doesn't list securities… end of story. Chief legal officer Paul Grewal said:
"I’m happy to say it again and again: we are confident that our rigorous diligence process — a process the SEC has already reviewed — keeps securities off our platform, and we look forward to engaging with the SEC on the matter."
