American crypto-users have been using digital coins since their conception and the bull run of Bitcoin [BTC] has attracted more crypto-fans and spurred wider adoption. Due to this fact, US became the highest traffic generator for the world’s popular crypto-exchanges. Growing popularity has led to regulatory agencies passing laws pertaining to cryptocurrencies.
A recent notice titled “2014-21” covered various aspects associated with taxation of cryptocurrency earnings made through digital currencies, a note which was highly criticized by many in the crypto-community.
Popular Congressman Tom Emmer is in the news after he proposed a bill popularly termed as ‘Safe Harbor for Taxpayers with Forked Assets.’ This bill advocates in favor of crypto-owners, in terms of providing a safer tax treatment.
Previously, Emmer’s request to protect earnings from cryptos had lost lost momentum in the House. The latest version of the bill focuses on reducing the tax burden on digital coin investors. This version of the bill aims to counter the Internal Revenue Services’ rule on tax imposition, in order to protect American taxpayers from tax penalties.
Further, a focal point of the bill is to change the penalty provisions imposed on users who have made an earning out of cryptos over an applicable period. Primarily, the applicable period specified in the bill ranges from the period before the approval of law, to the date when the legal regulation is passed.
The bill also expands on the rules for calculating and allocating firm support for virtual currencies, along with addressing fresh rules for calculating the fair market value of digital currencies over a specific period of time.
This new crypto bill has been received well by many in the cryptocurrency community. However, it should be noted that this is just one of the bills before American policymakers, with regard to the regulation of digital assets.