A statement on Tuesday said that Senators Patrick Toomey (R-Pa.) and Kyrsten Sinema (D-Ariz.) have filed a measure to the U.S. Senate that would exempt crypto transactions up to $50 from capital gains taxes.
The Internal Revenue Service now sees bitcoin assets as property and crypto transactions as investments rather than payments, which means that every time an American exchanges or sells cryptocurrency, they must track and pay capital gains taxes.
This has significantly hampered the asset class's potential for use in traditional trade, which many detractors and regulators have used as evidence against the usefulness of cryptocurrencies as money.
The bipartisan legislation, known as the Virtual Currency Tax Fairness Act, aims to exempt modest cryptocurrency transactions from the requirement to report capital gains.
If passed into law, the bill would be applicable to transactions having a value of less than $50, with an option to raise or lower that threshold in accordance with inflation.
In particular, the bipartisan bill with the same name that was introduced to Congress in February by Representatives Suzan DelBene, David Schweikert, Darren Soto, and Tom Emmer had set the threshold benchmark at $200.
Senators Kirsten Gillibrand and Cynthia Lummis unveiled a comprehensive crypto bill in June that included, among other things, a provision to lower taxes on all cryptocurrency transactions under $200.
The lobbying attempts to exempt modest crypto transactions from capital gains tax rules have received widespread support from the community and from crypto lobbying groups, but it is unlikely that any legislation will become law by the end of the year.
The present legislative calendar, which is full of non-crypto-related concerns, expires before the November midterm elections.
Furthermore, Senator Toomey won't be seeking reelection, so he won't be around to help push the bill toward its likely passage in the following Congress.