US House Resubmits Legislation to Simplify Tax Burdens on Crypto Users

$908B Coronavirus Bill Met With Counterproposal

The two largest cryptocurrencies, bitcoin and ethereum, surged last week as prices increased following a stronger-than-expected U.S. jobs report, Forbes reported Saturday (Feb. 5).

While economists and analysts prepared for a gloomy employment picture Friday (Feb. 4), jobs rose by 467,000 in January, and the unemployment rate was flat at 4%, according to U.S. Bureau of Labor Statistics data.

Read more: Employers Add 467K Jobs Despite Omicron’s Shadow

The bitcoin price has fallen sharply from a peak of nearly $70,000 late last year but has rebounded from a low of $32,000 in January, according to the Forbes report. Last week, it surged above $40,000. The ethereum price also rose by 20% over the last week. 

The cryptocurrency gyrations struck as a bipartisan group of lawmakers in the U.S. House Representatives has reintroduced a bill that would exempt Americans from paying taxes on crypto payments under $200.

U.S. Reps. David Schweikert and Suzan DelBene re-introduced the Virtual Currency Tax Fairness Act Thursday (Feb. 3). The measure would revamp IRS rules “to address virtual currency and its impact on the daily life of millions of Americans,” according to a press release.

Schweikert said in the release that “virtual currency is reshaping our everyday lives,” and the U.S. must “recognize this and work to treat these currencies fairly in our tax code.” The measure “is an important step forward” and “lays the groundwork for growing the digital economy.

“Antiquated regulations around virtual currency do not take into account its potential for use in our daily lives, instead treating it more like a stock or [exchange-traded fund (ETF)],” DelBene said in the release.

If approved, the legislation would simplify tax burdens on daily crypto users who must now report even the smallest capital gains, the release stated. Today, crypto users are required to report cryptocurrency dollar value changes from when they purchased the crypto even if it used by buy a cup of coffee.