Sens. Pat Toomey (R-Pa.) and Kyrsten Sinema (D-Ariz.) introduced legislation on Tuesday that would exempt small cryptopurchases from a capital gains tax, The Hill reported. The pair of lawmakers introduced a bill that would offer an exemption for personal transactions using cryptocurrency of less than $50 or personal transactions that have gains of under $50 from being subject to a capital gains tax. The legislation would encourage people to use cryptocurrency for small trades and transactions without worrying about being subject to typical taxation requirements. Transactions that use cryptocurrency can be taxed, according to the IRS’s website, which notes that “taxpayers transacting in virtual currency may have to report those transactions on their tax returns.” If the digital assets used in a transaction saw an increase in valuation, that person would currently be subject to a capital gains tax.
