Why This New Act of Congress Could Drive Crypto Adoption

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,…