US Congressman Ted Budd: IRS should treat crypto like foreign currency

06 Jun, 2019
by David Borman
Regulation
US Congressman Ted Budd: IRS should treat crypto like foreign currency

It is being reported by Cointelegraph that recently, United States Congressman (R-N.C.) Ted Budd testified to the House of Representatives Ways and Means Committee to discuss bill H.R.3708, or the “Cryptocurrency Tax Fairness Act,” which would see crypto treated as foreign currencies and therefore tax exempt.

Congressman Budd made the case that it is wrong that the IRS currently treats crypto as property and therefore applies a capital gains tax on the sale of crypto for fiat. This can lead to up to 40% taxation on the transaction, due to the current code treating it as both a sale and a purchase.

Budd would like to see a "de minimis" tax exemption for crypto, which is the same exemption that foreign currencies enjoy.

This bill in fact is after the same type of change that the Token Taxonomy Act would enable, should it pass. Both would like to see a reform to how crypto is treated and both would eliminate the current taxes on all crypto transactions.

One other thing Budd touched on is that the development of blockchain technology is a long-term national economic issue, saying that it could hurt the US economy if current tax laws pushed all blockchain developments to other countries.

Will the US see a change that would end taxation on all crypto purchases? Stick right here with Chepicap for all updates!

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Read more about: United States SEC

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