Two US Senators have proposed a new comprehensive bill updating crypto capital gains tax reporting, addressing proper government control of crypto, stablecoins, and consumer protection.
“Big Reveal: Thrilled to be working w/ @gillibrandny on a bipartisan framework to offer clarity, set appropriate sideboards, and assure adequate safeguards,” Senator Lummis tweeted in March 2022.
With feedback, this law will enable the digital asset industry in America to evolve and flourish.”The tweet followed President Biden’s signing of an executive order that will see numerous government departments undertake the task of creating a cryptocurrency regulatory framework.”
Lummis believes that most cryptocurrencies are commodities and hence subject to the Commodity Futures Trading Commission’s regulation. Lummis further said in an earlier interview with Politico that she believes bitcoin and Ether to be commodities, but some of the other cryptocurrencies would still need to pass the Howey Test.
Both Lummis and Gillibrand ask the Securities and Exchange Commission to safeguard exchange customers from fund losses due to security breaches, in line with the Commission’s recently approved accounting methods designed to protect consumer assets in exchanges.
The Senators suggest a $600 limit for no tax reporting obligations, making life easy for even the youngest US citizen who owns cryptocurrency. According to Lummis in an interview with Yahoo Finance, this limit is subject to modification. “We came up with a number of $600 just to get started,” she said, “but one of the things we’re doing is sharing our bill drafting with a lot of stakeholders so we can get feedback.”
