U.S. legislators have announced a bipartisan initiative to modernize federal tax codes treatment of digital assets. The effort focuses on stablecoins and everyday transactions as well as staking rewards, mining rewards, and staking.
Max Miller, R-OH and Steven Horsford, D-NV released The draft Digital Asset PARITY Act aims to simplify and clarify tax laws for dollar-pegged stablecoins that are regulated. It also reduces unnecessary reporting burdens associated with routine crypto payments.
This proposal is also intended to explain how digital assets are traded and to extend the established tax rules for lending securities to digital asset loans that qualify, thus ensuring virtual currencies have equal treatment under existing financial regulations.
In addition, it would give taxpayers more flexibility to recognize income from staking or mining rewards through deferral of payment under certain conditions. This will address the concerns that people have about “phantom income” Before assets are sold, generate revenue.
Says Congressman Miller,
“America’s tax code has failed to keep pace with modern financial technology. This bipartisan legislation brings clarity, parity, fairness, and common sense to the taxation of digital assets. It protects consumers making everyday purchases, ensures the rules are clear for innovators and investors, and strengthens compliance so everyone plays by the same rules.”
They also propose applying wash-sale or constructive-sale to digital assets in order to stop abusive tax-shielding strategies. And they modernize charitable deduction rules that apply to highly liquid digital asset. This is part of a larger push for aligning crypto taxation to traditional financial systems, and reducing ambiguity within the Internal Revenue Code.
Join us! X, Facebook You can also find out more about the following: Telegram
Don’t Miss a Beat – Subscribe Get email notifications delivered straight to your Inbox
Check out the latest news and updates on our website. Price Action
Search for a way to surf The Daily Hodl Mix
 
Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors must do due diligence prior to making high-risk investment in Bitcoin, cryptocurrency and digital assets. You are responsible for any losses that you might incur. The Daily Hodl is not an investment adviser and does neither recommend buying or selling cryptocurrencies or other digital assets. The Daily Hodl is an affiliate marketer.
Featured Image: Shutterstock/prodigital art/Natalia Siiatovskaia
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: dailyhodl.com
