The debate surrounding cryptocurrency tax has been on for a while now, with many public figures outside the cryptocurrency space believing that the digital assets’ taxation system is not sufficient and sustaining. Earlier in the year, the U.S Library of Congress released a report showing that only about five countries, amongst the many nations adopting digital assets, understand how its taxation works. However, Cynthia Lummis, a Senator, and famous Bitcoin investor and analyst, believes that the need to reform crypto taxation in the country is already pressing and does not believe it is unachievable.
Crypto policymakers want a review of tax laws
In a new report yesterday from the U.S Congress, the Senator spoke to many crypto chiefs and executives on social media app ClubHouse about reforming cryptocurrency taxing in the country. In her speech, she believes that good tax reforms in place will mean well for the country’s cryptocurrency space. She also expressed optimism about reaching a unified conclusion on the matter with her fellow congressmen, as she promised the Crypto Executives that the issue would be resolved soon. In their response to the Senator, the crypto policymakers and Executives were delighted with her commitment to their request, as the Senator herself is also affected by the unfair tax policies.
The crypto policymakers also wanted Lummis to help propose a tax exemption rule for small cryptocurrency transactions. They believe that the current rule in place towards small crypto transactions is not aiding its adoption. The current IRS guidelines in place mean that cryptocurrency transactions of as low as $5 are taxable under the law, a rule that many Crypto enthusiasts find annoying and needless. Many crypto analysts believe that many crypto holders would prefer to transact with fiat currency instead of digital currency with such regulations in place.
The Crypto community is counting on Cynthia Lummis
The crypto policymakers are hoping that the Senator’s interest in Cryptocurrency trading and activities will help in their quest. Lummis has not hidden her interest in cryptocurrency, as the Senator had always been one of the few who have publicly shown interest in the affairs of the space in the congress. The crypto regulation issue was also discussed by the Crypto policymakers, who inquired from the Senator if there are any plans of improved regulation from the Joe Biden administration.
However, Lummis did not confirm or deny any, as the Senator assured that after the tax reform is sorted, the congress will have to look at other issues facing the booming market. The issue of cryptocurrency taxing will always be one that will continue to stirrup many debates, as the current policies surrounding the taxing system remain questionable and believed to be unfair to the growth of the system. However, the Crypto policymakers and Executives will now be counting on Cynthia Lummis’s exposure and many lawmakers to save them.