Crypto Regulation: Major Tax Reform Bill Submitted to US Senate

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Another major crypto tax bill was introduced in the United States Senate as regulation in the industry is taking center stage this election cycle.

Coin Center And US Senators on Crypto Tax Bill

Jerry Brito, the Executive Director of Coin Center noted that the Virtual Currency Tax Fairness Act was introduced with bipartisan sponsors. Notably, this is the second time in the Senate today.

This bill aims to create a “sensible de minimis exemption” from capital gains tax for low-value cryptocurrency transactions in day-to-day use. This is quite similar to the exemption that exists for foreign currency.

The Virtual Currency Tax Fairness Act was introduced with bipartisan sponsors for the second time in the Senate today. The bill would create a sensible de minimis exemption from capital gains tax for low value cryptocurrency transactions in day-to-day use — very similar to the…

— Jerry Brito (@jerrybrito) July 25, 2024

The Coin Center executive highlighted his firm’s advocacy for such solutions over the years. Therefore, they engaged a few Senators to have the bill delivered in the Senate. The sponsors includes Sen. Ted Budd, Sen. Kyrsten Sinema, Sen. Cynthia Lummis and Kirsten Gillibrand.

The collective effort made the bill the first bi-partisan and bi-cameral cryptocurrency legislative effort bordering on taxation.

US Senators Fight For Robust Crypto Regulations

Noteworthy, these senators are some of the core supporters of clear crypto regulations. To a large extent, Sen. Lummis has pushed the United States to adopt cryptocurrencies wholeheartedly.

She once criticized the Department of Justice (DOJ) for its interpretation of regulations surrounding non-custodial software wallets. This followed DOJ’s filing of criminal charges against developers tied to the Bitcoin mixer Samourai Wallet and the Tornado Cash.

Immediately after the Securities and Exchange Commission (SEC) approved spot Ethereum ETF, Sen. Lummis pressed Congress to establish a clear crypto regulatory framework for the industry. Her call for Congressional action came as a result of concerns around market volatility and consumer protection.

The Lummis and Gillibrand duo have spearheaded a couple of other crypto bills in the past. Both lawmakers introduced a significant legislative proposal aimed at regulating stablecoins.

Generally, their effort reflects the headway recorded for clear regulations in the crypto ecosystem.

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