Crypto Wants a De Minimis Tax Exemption in the U.S.


19 Sep 2023 5:30 PM

The industry weighed in on a Senate committee request for comment, hitting common themes....

  • Representatives of the crypto industry have responded to the Senate Finance Committee's request for comment on tax rules around digital assets.
  • The Senate Finance Committee is overseeing a public comment period, which could lead to potential legislation or hearings on crypto taxation in the U.S.
  • The industry has proposed suggestions such as taxing cryptocurrencies generated via staking at the point of sale, clarifying rules around wash trading, and implementing de minimis rules.
  • Treating crypto as a medium of exchange carries different tax burdens compared to treating it as an investment, creating logistical challenges for frequent transactors.
  • The Crypto Council for Innovation criticized a proposed White House excise tax on miners, arguing that it should apply to all industry energy users.
  • The DeFi Education Fund advocated for rules around crypto loans analogous to rules for loans of securities.
  • Section 6050I of the Infrastructure Investment and Jobs Act of 2021, which requires reporting personal information for crypto transactions over $10,000, is deemed unworkable by some industry groups.

The sentiment in the article is mostly negative, as the industry views current tax rules as a barrier to broader adoption and usage of cryptocurrencies. Industry groups are critical of proposed taxes and regulations, highlighting challenges and potential issues.

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