The United States government has been active in monitoring developments in the cryptocurrency industry and ensuring they adhere to written law. Government agencies have also taken steps to listen to, and devise strategies for, the digital asset space
During a recent US congressional meeting, one of the testifying witnesses claimed that the US cryptocurrency taxation expectations were mired in complexities.
The meeting was titled “Building Blocks of Change: The Benefits of Blockchain Technology for Small Businesses and included parties that defended as well as attacked blockchain technology. The focus was on small businesses because regulators believed that blockchain technology could really help them build from the ground up.
Officials like Marvin Ammori, who serves as a member of the General Council of Protocol Labs, have added that cryptocurrency taxes are the worst nightmare, in response to a question as to whether crypto is ready for mass adoption. Compared to discussions on launches, such as Facebook’s Libra, the Small Business Committee took a new look at distributed ledger technology.
Congress aimed to have a healthy conversation about how blockchain can help emerging businesses grow, rather than just applying it for cryptocurrencies. Mr. Marvin Ammori also pointed out the difficulties that may arise when cryptocurrencies like Bitcoin are used. He said:
“If you wanted to spend Bitcoin on a coffee this morning, you’d have to keep track of what you paid for the Bitcoin and how much it was worth the moment you spent it, and pay the capital gain or loss on every single transaction. If we could have a de minimis tax exemption, which has been proposed — the Virtual Currency Tax Fairness Act — I think all of you should support that.”
The confusion caused by the decisions of the Securities and Exchange Commission [SEC] and the CFTC was also discussed in US Congress. The need for clarity among regulators has been a major marker in the industry, as a number of inane laws have brought down critical cryptocurrency projects. Some cryptocurrency enthusiasts even say that the SEC directives do not allow the creation of a Bitcoin ETF.
This was the first time in a long time that the US Congress actually made some valuable points rather than just making a mockery of the industry. The cryptocurrency space has been the subject of ridicule several times earlier with people who have no idea about the technology partaking in it. Meetings such as the Building Blocks of Change act as stepping stones in improving the talk around crypto.
The most recent meeting was a follow-up to another meeting held on 3 March. During the earlier discussion, four digital asset space experts spoke about their recent leaps and opportunities. The panel also included Jesse Sprio, Chainalysis ‘ Global Head of Policy and Regulatory Affairs.