A bipartisan bill has been pitched to the US Senate which would enable consumers in the US to buy coffee using cryptocurrencies without triggering a tax event.
The Virtual Currency Tax Fairness Act was introduced by Senator Pat Toomey and Senator Kyrsten Sinema on Wednesday and aims to introduce a de minimis exemption for any gains of less than $50 on personal transactions.
“While digital currencies have the potential to become an ordinary part of Americans’ everyday lives, our current tax code stands in the way”, Toomey explained.
This new piece of legislation will hopefully enable Americans to feel more comfortable about using cryptocurrency as an everyday payment method and give them some comfort when looking to understand the technology better.
Sinema said that the bill was supposed to ensure that ordinary citizens are protected from tax events that are unfair or not clearly documented. Everyday digital payments, Sinema said, should be a part of the lives of Americans.
If this law is successful, it would seek to change the way cryptocurrencies are treated as payment methods.
Presently, any purchase – be that a cup of coffee or a Tesla car – is subject to tax and treated as such.
However, the growing use and ownership of cryptocurrencies in the US is already indicative that changes to the existing framework is necessary.
An estimated 16% of Americans already own cryptocurrency. The use of cryptocurrencies to complete retail purchase is growing, which in turn makes a new law that exempts some of the payments an absolute must.
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