U.S. senators Patrick Toomey (R-PA) and Kyrsten Sinema (D-AZ) have introduced a bill that would exempt Americans from reporting cryptocurrency transactions of less than $50, or trades in which they earn under $50, according to a release dated Tuesday.The bipartisan Virtual Currency Tax Fairness Act comes on the heels of similar legislation introduced earlier in 2022 by senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY).“While digital currencies have the potential to become an ordinary part of Americans’ everyday lives, our current tax code stands in the way,” said Toomey.The new bill, which complements the Virtual Currency Tax Fairness Act introduced earlier this year in the House of Representatives, aims to "allow Americans to use cryptocurrencies more easily as an everyday method of payment by exempting from taxes small personal transactions like buying a cup of coffee,” Toomey added.Nevertheless, the Internal Revenue Service ("IRS") continues to stand by its policy that any crypto transactions can be subject to capital gains tax. “When you sell virtual currency, you must recognize any capital gain or loss on the sale, subject to any limitations on the deductibility of capital losses,” according to the agency's website. Crypto advocates, in turn, have argued that the widespread use of digital tokens as a medium of payment is limited partly because of that policy among other factors such as price volatility. “Crypto...
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