A bill has been introduced in the US Senate that would exempt transactions with digital assets up to $50 from capital gains tax.

Senators Pat Toomey and Kirsten Cinema became the authors of the draft Virtual Currency Tax Justice Act.

If adopted, the document will exempt purchases in cryptocurrency from taxes. The $50 limit can be further adjusted for inflation.

The bill does not apply to transactions between digital assets and fiat. It recommends that “all sales or swaps that are part of the same transaction (or a set of related transactions) should be treated as a single sale or swap”.

Cryptocurrency users in the US are currently required by law to report income from spending on digital assets. In other words, in the US, cryptocurrency is considered primarily an investment, not a means of payment.

The community supported the initiative of the senators, notably the Coin Center, the Blockchain Association, and the Digital Asset Markets Association.

The Virtual Currency Tax Justice Act of 2022 was introduced in the Senate today with bipartisan sponsors. https://t.co/U3lVEQp22R

— Coin Center (@coincenter) 26 July 2022

Recall that the draft “Responsible Financial Innovation Act” submitted by the same senators in June also includes a $50 threshold for taxation of crypto transactions.

Previously, Lummis predicted that the document would be adopted in 2033.

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