Dorsey and Lummis Advocate for Bitcoin Tax Relief

Block founder Jack Dorsey has called for a federal tax exemption on everyday Bitcoin transactions, urging the revival of a legislative effort that previously failed due to time constraints in Congress. Senator Cynthia Lummis responded positively, encouraging individuals to contact their representatives about the proposed exemption. The initiative aims to establish a de minimis tax exemption for Bitcoin transactions under a certain amount, alleviating reporting burdens that currently apply to all crypto transactions classified as property by the IRS. Although Lummis previously worked to include this amendment in President Trump's reconciliation bill, it did not make it through. Industry experts advocate for this and additional reforms to provide clearer reporting guidelines and tools for fiat conversion, emphasizing the need for comprehensive changes to promote broader acceptance of Bitcoin among merchants.

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