Bipartisan U.S. lawmakers reintroduce the ‘Fairness Act’ to advance crypto tax reform and urge the IRS to study a tax exemption mechanism for small transactions
According to ChainCatcher, citing a report from CoinDesk, US bipartisan lawmakers Steven Horsford, Max Miller, Suzan DelBene, and Mike Carey jointly reintroduced the “Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Revenue Act” (the “EQUAL Act”) on Wednesday. The updated bill mainly covers the following: first, that regulated payment stablecoins will not incur gains or losses if their cost basis is no less than 99% of their redemption value; second, the establishment of a safe harbor for broker-dealer or taxpayer account transactions; third, clarifying how the “wash sale” rule applies to digital assets; and fourth, requiring the IRS to assess the current tax burden of small crypto transactions and study both the feasibility and potential abuse risks of establishing a tax exemption for transactions under $200.
The crypto industry has long advocated for tax exemptions on small transactions to promote cryptocurrency use in everyday payment scenarios. Representative Horsford stated that tax policy forms the foundation of the crypto regulatory framework and that many core issues regarding digital assets remain unaddressed in current tax law.
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