The new draft law, with the support of Republicans and Democrats, aims to create a fairer tax structure for crypto users. Under the title “The CryptoCurrency Tax Fairness Act,” the law requires the creation of a new minimum point of purchase at which the bitcoin can be used as a currency without paying a capital gains tax.
Lawmakers, Rep. Jared Polis (D-Co) and Rep. David Schweikert (R-Az), want to secure the release point for digital currency owners and create legislation similar to that already in force for the use of foreign currency. The law envisages that a series of similar transactions is considered as a single transaction, but no instructions are given as to what is meant by the concept of similarity. The bill reads:
“For purposes of this subsection, all sales or exchanges which are part of the same transaction (or a series of related transactions) shall be treated as one sale or exchange.”
The bill comes at a time when there is widespread concern among the owners of cryptocurrency from federal tax policies. Recent news on the dialogue between Coinbase and the IRS are one example of the growing mistrust of crypto-owners among legislators.