Coin Center urges Congress for clearer crypto tax regulation

The crypto-focused policy nonprofit Coin Center has urged two Congress members for clearer crypto regulations, especially when it comes to taxation.

In a letter to Senate Finance Committee Chairman Ron Wyden and Finance Committee Ranking Member Mike Crapo, Coin Center listed certain principles it says the government should consider for blockchain regulation.

"If a country wishes to tax cryptocurrencies as property and collect capital gains taxes when cryptocurrencies are sold at a profit, then it should provide guidance on how to account for basis," Coin Center wrote.  "There should also be a threshold in the amount gained below which no tax is due."

De minimis exemption

"Without such a de minimis exemption from capital gains taxation, a cryptocurrency user could trigger a taxable event every time she pays for a good or service rendering cryptocurrencies too complicated for daily use in payments – especially in novel micropayment applications where transactions can be just pennies," it continued. 

Coin Center has been pushing for a de minimis exemption related to cryptocurrency since at least 2020.