Cryptocurrency in congress
In a recent discussion with Ted Budd who is the US congressman, explaining how tax laws and policies could threaten the adoption of cryptocurrencies. Which could cause blockchain innovations to be pushed overseas. Which He is calling a national security issue.
In a testimony that the House Ways and Means Committee in the United States House of Representative made back in June. Where the support of cryptocurrencies and the Tax Fairness Act and Virtual Tax Fix in 2018 got started.
These bills show the current low adoption of cryptocurrencies such as Bitcoin. As Bitcoin can carry with it, for its usage, double taxation in some jurisdictions that is not applied to any fiat-currencies.
According to the congressman this double taxing of bitcoin can prevent individuals from spending any cryptocurrencies just like regular money. In their area or jurisdiction.
He stated in a comment saying that:
“First i want to talk about why virtual currencies should have a de minimis exemption because currently, as you all probably know, cryptocurrencies and blockchain tokens do not qualify. the IRS treats virtual currencies as property under US tax laws and this, of course, means that the sale or exchange of blockchain tokens for fiat currency or other goods or services is a taxable event. For example, if a token user spends $65 worth of Bitcoin to buy soda from a vending machine, he is required by law to calculate and pay the tax liability associated with that transaction.”
There are a lot of organisations such as Coin Center, blockchain Association and the Chamber of Digital Commerce. Stating that they are ready to work with legislators in order to make a draft for the coming monetary policies that will be stimulate the economy. Moving digital decentralised financial system.