The Blockchain Association, a U.S.-based cryptocurrency advocacy group, has submitted recommendations to lawmakers for consideration in potential legislation regarding the tax treatment of digital assets.
In a September 8 letter to U.S. Senators Ron Wyden and Mike Crapo, the Blockchain Association stated that lawmakers should support the Keep America Innovative Act, which seeks to change reporting requirements for certain taxpayers involved in crypto transactions. . The advocacy group said any legislation proposed by Congress should “create symmetry” between the taxation of crypto and non-crypto assets and clarify requirements for information on income derived from cryptocurrency staking and mining.
Some of the recommendations are similar to those put forward by cryptocurrency advocacy group Coin Center in August, including establishing minimum standards Threshold designed to exclude gains or losses from certain cryptocurrency transactions from tax reporting requirements. The Blockchain Association submitted the letter on the last day the U.S. Senate Financial Services Committee said it would accept responses to the July request.
“[T]The Commission should develop intentional and prudent legislation focusing on specific tax issues related to digital assets,” the September 8 letter stated. “[T]The Association urges the Commission to be careful not to enact legislation that provides digital assets with less favorable tax treatment than other assets, and instead focus on enacting legislation that provides a level playing field for digital assets compared to other assets. “
1/ Today, we submitted a letter in response to the Senate Finance Committee’s Request for Information (RFI) seeking policy input on the taxation of digital assets. https://t.co/4aF8XGfjpY pic.twitter.com/pEm3BfwuuH
— Blockchain Association (@BlockchainAssn) September 8, 2023
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Other suggestions for the two senators to consider include opposing the Biden administration’s proposed excise tax on digital asset mining, claiming the measure could “inhibit the growth and development of the crypto industry.” The proposal, first announced in March as part of U.S. President Joe Biden’s fiscal 2024 budget, includes a 30% excise tax on electricity used by cryptocurrency miners.
U.S. lawmakers’ call for cryptocurrency tax guidance comes after the Internal Revenue Service (IRS) issued an announcement on July 31 that filers must report staking rewards as gross income in the year they are received, setting new rules for U.S. taxpayers in 2024. standard. The purchase, sale, and exchange of crypto assets are primarily taxed as capital gains and losses, and mining rewards are subject to the same requirements.
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