The taxation of crypto assets may well be hindering their adoption in the United States. Deemed a commodity by the CFTC and property by the IRS, each time an individual makes a purchase with a digital currency, they are almost certainly creating a taxable event.
Striving for more practical taxation regulations for crypto assets is Washington-based Coin Center. The non-profit worked with members of Congress to introduce a bill that, if passed, would allow low value transactions to be tax exempt.
US Tax Law Makes Actually Using Crypto Tough…
Since cryptocurrency is deemed both a commodity by the Commodity Futures Trading Commission and property by the IRS, spending any amount of crypto is currently considered a taxable event. For anyone actually wanting to spend cryptocurrency, this creates a serious headache come tax season.
The IRS published guidance relating to cryptocurrencies in 2014. It stated that Bitcoin and other digital assets were to be treated as property and, therefore, would incur capital gains when bought or sold. This includes when making seemingly trivial purchases.
Since the prices of leading digital currencies tend to bounce around a lot, the sheer amount of reporting that would be required by anyone attempting to use them for day to day spending is a serious turn off. Of course, this is not the only barrier to serious adoption of the decentralised currencies, but it certainly doesn’t help.
The Virtual Currency Tax Fairness Act of 2020 aims to address that. The legislation has been introduced to US Congress today by Representatives of both parties. The measure seeks to make making low value crypto transactions much simpler.
Congress takes a step toward a de minimis exemption for everyday cryptocurrency transactions https://t.co/3tQ5oIrnqL
— Coin Center (@coincenter) January 16, 2020
The new act was introduced by Representatives DelBene, Schweikert, Soto, and Emmer. It would allow for cryptocurrency transactions to be tax exempt for smaller value purchases. It would work just as a foreign currency de minimis exemption does. That is to say, individuals would not need to report transactions creating a gain or loss of less than $200.
Washington-based crypto research group Coin Center has been working for years now towards a feasible solution to the clear barrier to cryptocurrency adoption. In a report the non-profit explains how it has collaborated with Reps. DelBene and Schweikert to bring the idea back the lawmakers’ attentions.
The researchers write:
“This easy solution to an obvious problem with today’s tax treatment of cryptocurrencies would help level the playing field for this technology.”
Related Reading: Binance Futures Adding Chainlink Could Spark Major LINK Volatility
Featured Image from Shutterstock. The post appeared first on NewsBTC. origin »
Global crypto adoption grew by 13% in 2024, with Bitcoin and Ethereum adoption rising by 13.1% and 13.6%, respectively. According to the annual Crypto Market Sizing Report by Crypto.com, global crypto adoption, measured by ownership of crypto assets, grew by…
The digital asset market has begun transitioning from early adoption to mass adoption. A sea change in industry leadership, product development and fiduciary commitment swept crypto in 2023 and early into 2024.
Deutsche Bank, the asset manager overseeing €1. 34 trillion, has entered into a strategic partnership with Swiss-based crypto firm Taurus. The alliance is set to bolster the mainstream adoption of cryptocurrencies and tokenized assets by providing specialized custody services for institutional clients.
Facing a number of regulatory challenges and slowing growth in adoption, the future of American crypto sector hangs in the balance.
The post US Crypto Startups Face Adoption Slowdown and Difficult Regulations appeared first on BeInCrypto.
The introduction of blockchain technology has brought various opportunities and innovations in the decentralized space. Along with these positive outcomes, the adoption of crypto tax has taken the bloThe post Ledgible catalyzing TradFi adoption with its crypto taxation and accounting tools appeared first on AMBCrypto.
While U.S. the most dominant player in crypto, a state-wise analysis reveals that not all 50 states are equally prepared for the inevitable mainstream crypto adoption.
The crypto industry has grown massively in the past years, with increasing mass adoption being fueled by the global economic downturn brought on by the pandemic. The effects of the pandemic have eased up a bit, but the crypto adoption rate has surged nonetheless, as fresh concerns about financial systems surface. A notable American entrepreneur […]
Accenture recently carried out a survey studying digital asset portfolios of Asian investors. Accenture research suggests that cryptocurrencies will see a huge growth in the future among elite Asian iThe post Land ahoy! Unraveling how Asia can be the next big place for crypto adoption appeared first on AMBCrypto.
A group of former executives of cryptocurrency exchange Binance have created a $100 million venture fund with a focus on the metaverse and bringing greater crypto adoption to Latin America and Africa.
The gaming industry is pegged to hit the $200 billion mark by 2024 and is constantly outperforming expectations. Play-to-Earn (P2E) is trending in GameFi, besides being a significant catalyst for crypto adoption.
The Governor of California has issued an executive order laying out the state's roadmap for crypto adoption in a first-of-a-kind move.
The post California Governor Announces Legal Framework for Crypto Adoption appeared first on BeInCrypto.
A new crypto study has found that major obstacles await crypto adoption across the world. Bitstamp, a global cryptocurrency exchange, carried out the survey of over 23000 retail and 5000 institutionalThe post EU and UK represent a unique challenge for crypto adoption: Report appeared first on AMBCrypto.
Key Takeaways Australian crypto market leaders urge the country to embrace crypto adoption. The call is coming after the UK’s recent unveiling of crypto adoption plans. Australia has been progressing towards greater regulatory clarity for crypto.
Key Takeaways Despite the SEC delaying ETFs, Bloomberg analysts see room for more adoption in the coming months. More Crypto adoption is also expected to enter the US market. Crypto adoption in the United States is facing major pushback from policymakers, who had in time past put a strain on the level to which crypto […]
Regulatory clarity and institutional adoption are areas of note for the crypto space in…
The post FTX CEO says regulatory clarity could herald a “tidal wave” of institutional crypto adoption appeared first on Coin Journal.
Chainalysis released the 2021 Global Crypto Adoption Index yesterday, which saw Vietnam take the…
The post Report: global crypto adoption is up 881% over the past year appeared first on Coin Journal.
Crypto adoption has been growing at a rapid pace, and in June, the number of global crypto users reached 221 million, up from just over 66 million at the end of May 2020. In the second half of 2020, the adoption accelerated, and while it took nine months to go from 65 million to 100 […]
The post Altcoins, Not Bitcoin, Drives the Latest ‘Massive’ Surge in Crypto Adoption: Report first appeared on BitcoinExchangeGuide.
The Covid 19 pandemic fueled cryptocurrency adoption as other currency forms came crashing down as economies took a turn for the worst. Higher Crypto Adoption The crypto community capitalization is officially over with a modest 5.
The interest in cryptocurrencies has been on the rise and the general awareness of the technology and its function as a digital asset has risen substantially in the past few years. While the United StThe post Why countries like the US can do better in terms of crypto adoption appeared first on AMBCrypto.
Cryptocurrencies have come a long way over the last decade. Bitcoin has become a major investment asset, while crypto projects now don $1 billion market cap without flinching. The adoption of crypto is picking up steam.
According to a report published by Crypto. com, global crypto adoption surged by 15. 7%. Digital Currencies Continue to Perform There were over 106 million crypto users in January 2021 due to soaring demand for Bitcoin and massive growth in the DeFi sector.
India’s largest crypto exchange CoinDCX has rolled out CoinDCX Go, a new app that will enable more crypto adoption. The exchange is eyeing massive crypto adoption especially among new investors who are looking to enter the crypto industry.
Chainalysis, a cryptocurrency, and blockchain analysis firm, released it's latest Global Crypto Adoption Index 2020, showing developing countries are witnessing greater adoption for crypto – Ukraine, Venezuela, and Kenya featured in the top five countries with Russia and China completing the list.
Crypto debit cards were looked at as the next big move for broader crypto adoption and involvement of mainstream players like Visa in the issuance of a card that brought confidence to the industry. While the crypto debit card arena paints a rosy picture for a broader crypto use and adoption, the reality has been […]
Coinspeaker Why Banks Are the Key to Crypto Adoption in the United StatesWhile countries are recognizing cryptocurrencies as legitimate forms of currency, it seems that the future of crypto adoption has never been brighter.
The world still has a long way to go to achieve mass crypto adoption. Among the major roadblocks to broad-based institutional adoption, crypto custody ranks among the top 5.
Sal Ternullo, DirectorThe post Lack of crypto custody safeguards preventing institutional adoption? appeared first on AMBCrypto.
Adoption is very important for the development of the crypto world. Fortunately, companies such as iAngels exist. Created by a software engineer, a former lawyer and a Wall Street trader, the company is focused on promoting the adoption of crypto and securing investments for blockchain startups at the same time that it educates traditional capitalists […]
The crypto market has spiked in recent months, but the number of downloaded industry apps has not increased. This is according to a report published by Bloomberg. It reveals that…
The post Crypto App Downloads Low, Tech Companies Make Crypto Adoption Easier appeared first on CoinCentral.
CoinDesk reports that blockchain company, Amero-Isatek, has announced that it will launch a physical crypto exchange in Monterrey, Nuevo…
The post 800K Mexican Crypto Users Get 8 New Exchanges To Boost Adoption appeared first on Invest In Blockchain.
Is the long-awaited mainstream adoption finally coming to the crypto market? A deeper look into Starbucks’ crypto plans, which includes a blockchain and BTC payments
There’s no question that one of the primary drivers of previous crypto market bull runs have been sudden influxes of buying pressure from individual investors. Although many analysts believe the next bull run will be driven by increased corporate and institutional adoption, individuals will undoubtedly play a large role in future price action.
Trump has ended the U.S. government shutdown. The SEC and CFTC remained largely paralyzed for 35 days, and crypto adoption will likely be delayed as a result
The road to crypto adoption has been an interesting one. In the last decade, crypto has seen acceptance from merchants around the world as well as more mainstream attention. There is, however, still work to be done and some feel that adoption should be done faster than the current rate. One of the reasons for […]
Many pundits have agreed that crypto and related technologies have the potential to shift global paradigms. And while this potential is widely acknowledged, with many forward-thinkers throwing themselves at the blockchain ecosystem, adoption of crypto products has yet to occur.
2018 was a thin harvest, but leaders of the crypto space are forecasting a bumper year in 2019. Leading executives at several blockchain startups expect adoption replacing speculation in the coming year, with regulatory clarity bringing in institutional players to create a stable market.
The crypto market may be going through hell, but it’s no secret that much has been achieved this year. There have been lots of developments meant to boost crypto adoption. Companies like Ripple and Tron Foundation have been doing everything to bring their native cryptos closer to the people.
Given the enormous potential of the blockchain technology, it wouldn’t be far-fetched to say that it will play an integral part in developing the next major phase of the internet. This next phase has been dubbed “Web 3,” and is touted as a concrete system with proper operational procedures that gives the power back to […]
The post Coinbase Plans to Bring Institutions Into Crypto As it Raises $300 Million To Boost The Crypto Adoption Campaign appeared first on ZyCrypto.
Meme coins are pure chaos, and Dave Portnoy is thriving in it. Wrong trades, wild flips, and token launches — he’s turning madness into millions. Here’s how. The wrong LIBRA gamble Dave Portnoy has never been one to shy away…
Meme coins are pure chaos, and Dave Portnoy is thriving in it. Wrong trades, wild flips, and token launches — he’s turning madness into millions. Here’s how. The wrong LIBRA gamble Dave Portnoy has never been one to shy away…
Thomas Smith, the chief technology officer of the now-defunct cryptocurrency firm SafeMoon, has pleaded guilty to securities fraud conspiracy and wire fraud conspiracy in connection with a multimillion-dollar scheme that allegedly defrauded investors of over $200 million. Per a recent…
Utah has advanced its Bitcoin reserve bill to the next stage of legislation, with a second and third reading in the Senate pending before a final vote. As per the latest update, Utah’s Senate Revenue and Taxation Committee has passed…
Strategy executive founder Michael Saylor advocated for a maxi-sized Bitcoin reserve in the U.S. to ensure cyberspace dominance for the next century and bootstrap America's lending might.
Transak has secured Money Transmitter Licenses in Illinois and Missouri, expanding its reach into the U.S. market. The newly acquired licenses in the two U.S. states will enable the web3 payment infrastructure provider to operate independently in Illinois and Missouri,…