New US Bill Likely to Exempt Most Cryptocurrencies From Taxation

The United States Congress has reinstated a bill that would make certain cryptocurrencies and related digital assets exempt from U.S. securities’ regulations.

Rumors in the crypto streets suggest that the new bill would make crypto-to-crypto transfers tax exempt, and change the tax structure for cryptocurrencies held in an individual account.

ALSO READ

Retailo and Vital Tea Announce Partnership

According to a press release, this is the ideal time to establish a regulatory framework for cryptocurrencies in the US, perhaps throughout the globe, something that industry players have repeatedly said since the BTC bull run of November 2020.

Thank you to @RepDarrenSoto, @RepJoshG, @RepTedBudd, & @RepScottPerry for cosponsoring my #TokenTaxonomyAct. It’s time for Congress to give this emerging industry the clarity it needs to continue changing the world with #blockchain. https://t.co/fmAfeKQXGN

— Warren Davidson 🇺🇸 (@WarrenDavidson) March 10, 2021

Yet the bill itself, though endorsed by the nonpartisan Blockchain Association, could produce the wrong kind of regulatory clarity, according to some. Exchange companies such as Coinbase might run into opposition from states that have created their own rules around cryptocurrency securities.

For the time being, the bill has been referred to the House Financial Services and House Ways and Means committees. Crypto analysts expect the bill to win majority approval within the next few weeks.