Senator Lummis advocates for improvements in crypto taxation policies
Senator Cynthia Lummis has put forth an amendment that aims to offer tax breaks for Bitcoin and other cryptocurrencies within the "Reconciliation Bill." This move aligns with the U.S. government's pro-crypto vision, as it seeks to promote the use of Bitcoin as a payment method and strengthen the U.S. mining industry.
The proposed tax breaks, if approved, would eliminate double taxation on profits from blockchain validation, particularly for Bitcoin mining companies. Crypto values received would only be taxed when sold, not when received. Additionally, crypto payments up to $300 per transaction would be exempt from taxation, with a yearly limit of $5,000.
Michael Saylor, founder of Strategy, has voiced his support for Lummis' proposal, emphasising the need for fair tax treatment to make the U.S. a "Bitcoin superpower." The White House is reportedly pushing for Lummis' proposal to be included in the final version of the "Reconciliation Bill."
However, it is uncertain whether lawmakers will reach a final agreement by this Friday's "Independence Day" for the "Reconciliation Bill" to pass through Congress. Senator Joe Manchin recently made changes to the US legislative "Reconciliation Bill" at the request of Senator Cynthia Lummis to enable these tax breaks for Bitcoin and cryptocurrencies.
Lummis has also introduced a bill proposing that the U.S. should build a reserve of 1 million BTC. Meanwhile, a similar bill proposing a Bitcoin reserve in the U.S. State of Texas has been proposed. Vice President JD Vance has made comments regarding the U.S. Bitcoin reserve, but no further details are provided in the article.
Interestingly, former President Donald Trump has expressed his support for the bill introduced by Lummis, known as the "Bitcoin Act." During his campaign, Trump expressed a desire for all future Bitcoins to be mined in the U.S. Trump has also recently reiterated that the U.S. dollar could benefit from Bitcoin.
As the "Reconciliation Bill" progresses, it will be interesting to see how these developments unfold and whether the U.S. will indeed become a leading player in the crypto world.
Read also:
- Potential Consequences of Dismantling FEMA Vary Across States
- Railway line in Bavaria threatened by unstable slope - extensive construction site at risk
- Wind Farm Controversy on the Boundary of Laois and Kilkenny
- Puerto Rico's Climate Lawfare Campaign experiences another setback with the dismissal of its deals.
