The Blockchain Association, a US-based cryptocurrency advocacy group, has submitted recommendations to Senators Ron Wyden and Mike Crapo regarding potential legislation on the tax treatment of digital assets. The association's suggestions include supporting the Keep Innovation in America Act, creating symmetry between crypto and non-crypto asset taxation, and clarifying requirements for income earned from staking and mining crypto. They also advocate for establishing a de minimis threshold and oppose the digital asset mining excise tax proposed by the Biden administration, emphasizing the need for favorable tax treatment for digital assets.
The Blockchain Association, a prominent cryptocurrency advocacy group based in the United States, has submitted its recommendations to U.S. Senators Ron Wyden and Mike Crapo concerning potential legislation regarding the tax treatment of digital assets. The association's suggestions offer insights into addressing key issues related to cryptocurrency taxation. Here are the main points from their recommendations:
Support for the Keep Innovation in America Act: The Blockchain Association backs the Keep Innovation in America Act, a bill aimed at revising reporting requirements for specific taxpayers involved in cryptocurrency transactions. This support is seen as a step towards creating a fair and balanced regulatory environment for digital assets.
Creating Symmetry in Taxation: Any legislation introduced in Congress should strive to create symmetry between the taxation of cryptocurrencies and traditional assets. This alignment aims to ensure that digital assets are treated fairly and consistently under tax laws.
Clarifying Income Reporting Requirements: The Blockchain Association emphasizes the need to clarify tax requirements related to income earned from staking and mining cryptocurrencies. This clarification can help taxpayers accurately report their cryptocurrency-related income.
De Minimis Threshold: Similar to recommendations made by Coin Center in August, the Blockchain Association proposes establishing a de minimis threshold for certain cryptocurrency transactions. This threshold would exclude minor gains or losses from tax reporting requirements, reducing the compliance burden for individuals.
Opposing the Digital Asset Mining Excise Tax: The association voices its opposition to the digital asset mining excise tax proposed by the Biden administration. It argues that such a tax could hinder the growth and development of the cryptocurrency industry, and it suggests exploring alternative approaches to taxation.
The Blockchain Association's recommendations are part of a broader effort to provide guidance on cryptocurrency taxation in response to a request from the U.S. Senate Financial Services Committee. The committee announced that it would accept suggestions on how to tax cryptocurrencies until September 8. These suggestions come at a time when regulators are seeking to establish clear and balanced taxation policies for the cryptocurrency ecosystem, addressing issues such as reporting requirements, taxation thresholds, and regulatory consistency.
(TURNER WRIGHT, CoinTelegraph, 2023)