A new law, which looks to provide an exemption for individual crypto transactions from taxation for capital gains, has reportedly been proposed again to the Congress of the United States. 

The new law – dubbed “The Virtual Currency Tax Fairness Act of 2020,” – looked to exempt currency expenditures, which are viewed as personal transactions. 

Clients will be free from the duty of reporting the occasions where crypto was selected as a payment option, with its value changed accordingly to the U.S. dollar on a daily expenses. 

Representatives Suzan DelBene (D-WA) and David Schweikert (R-AZ) has proposed the new law on January 16th, with Schweikert has initially put up an older version of the bill for approval 3 years ago, which came with a significantly bigger exemption. 

Current tax laws are having a difficult time to handle crypto, due to the ever-changing nature of how it is viewed – investments, commodities, and sometimes just like other currencies.

At the moment, crypto users are required to fulfill their tax duties, based on the gains from the crypto they hold, and accordingly to the price value of their digital assets at the moment they bought them. 

The new bill would have a primary goal to provide tax paying exemption for taxpayers, for all gains that do not exceed the $200. Only major purchases or wild bull markets would need to be in compliant with the tax paying law. 

The bill would introduce a new category, adding to the current IRS exclusions from classification as gross income.