Senators Cynthia Lummis and Kirsten Gillibrand are proposing new legislation to make a certain level of captain gains on cryptocurrency tax exempt.
“We came up with a number of $600 just start out with, but among the things that we’re doing is sharing our bill draft with a number of our constituents so we can get feedback,” Lummis said in an interview with Yahoo Finance. “Is $600 the right number? Should it be higher considering inflation, and in other factors?”
The senators believe that this capital gains tax pass would create ease of use and support adoption.
“This is not like owning a stock because you’re not using your stock portfolio to play a computer game online,” said Gillibrand. “Imagine a kid owning some cryptocurrency in a game, and if he has $40 worth of cryptocurrency, you need to have a de minimis amount so that kid’s not filing taxes.”
Senator Gillibrand argues that blockchain technology is helping communities organize and providing ways for people to invest in art. She added that crypto entities are not trying to be banks or broker-dealers but offer a wide range of services in the financial arena.
Senator Lummis states the majority of cryptocurrencies are commodities, putting them under the jurisdiction of the Commodity Futures Trading Commission. She said, “We’re trying to create that opportunity to continue to innovate while having the playing field more clearly delineated.”
The proposed legislation also looks to protect exchange users against theft due to hacks.