Senator Lummis advocates for enhanced taxation regulations on Bitcoin
The US government is considering a pro-crypto vision, as evidenced by the amendment proposed by Senator Cynthia Lummis for the "Reconciliation Bill." This highly debated tax and spending bill, currently up for a vote in Congress, could potentially bring significant changes to the taxation of Bitcoin mining companies.
Senator Lummis' amendment specifically targets Bitcoin mining companies that are taxed both when they receive "block rewards" and when they sell their coins. Under her proposal, crypto values received should only be taxed when the companies sell them. Furthermore, the amendment aims to eliminate double taxation on profits from blockchain validation.
In addition, the amendment proposes that crypto payments up to $300 will not be taxed. This could be a significant relief for individuals and businesses using cryptocurrencies for transactions.
The proposed amendment aligns with the vision of former President Donald Trump, who has expressed his desire for future Bitcoin to be mined in the USA. Trump also recently emphasized that the US dollar could benefit from Bitcoin. It is reported that he supports the bill proposed by Senator Cynthia Lummis.
Vice President JD Vance has also spoken on the US Bitcoin reserve, while Senator Cynthia Lummis has introduced a bill proposing that the USA should build a stockpile of 1 million BTC. However, it seems unlikely that lawmakers will reach a final agreement by then.
The White House is reportedly pushing for Lummis' proposal to be included in the final "Reconciliation Bill." Senator Ted Cruz has also advocated for the inclusion of tax breaks for Bitcoin and cryptocurrencies in the bill.
President Trump is said to hope the "Reconciliation Bill" will pass through Congress by this Friday's "Independence Day." Critics argue that the bill will exacerbate the budget deficit and the national debt of the United States.
Meanwhile, Michael Saylor, strategy founder, supports this idea, emphasizing that fair tax treatment is crucial for the USA to become the "Bitcoin superpower." The future of cryptocurrency regulation in the US remains uncertain, but with the proposed amendment, the path towards a more crypto-friendly US government seems to be taking shape.
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