Get this: yesterday, Rep. Senator, Patrick Toomey, and Dem. Senator, Kyrsten Sinema agreed on something.

(It was a rare moment of solidarity)

That something was the 'Cryptocurrency Tax Fairness Act.'

Here's what they proposed:

Crypto transactions of less than $50, or trades in which a person earns less than $50, should be exempt from being reported to the IRS.

Here's why they proposed it (in Toomey's words):

“While digital currencies have the potential to become an ordinary part of Americans’ everyday lives, our current tax code stands in the way.”

And here's why it's important:

It's true - IRS regulations currently state that even the smallest of crypto transactions can amount to a capital gains event.

For example:

If you were to spend $20 worth of Bitcoin on a purchase, you would then owe ~15-40% of that spend ($3-8) to the IRS.

Which makes crypto a pretty inefficient form of currency.

Having a minimum (or, as they like to say in the law/Latin, “de minimis”) capital gains exemption on crypto transactions would hugely increase the practical usability of digital currencies.

But right now, regulations inhibit people from using crypto in their daily lives.

If passed, a bill like this would open things up for higher/faster adoption, and further innovations.

Maybe we won't get stuck with so much spare change either.

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