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

The authors of the document were Senators Pat Toomey and Kirsten Cinema.

If adopted, the document will exempt small purchases of 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”.

Users of cryptocurrencies in the US are currently required by law to report income from transactions with digital assets. In other words, regulators see cryptocurrency primarily as an investment vehicle, not as a means of payment.

The community, particularly the Coin Center, Blockchain Association, and Association for Digital Asset Markets, supported the senators’ initiative.

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, its co-author, Cynthia Lummis, predicted that the document would be adopted in 2023.

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