Coin Center’s executive director, Jerry Brito talked about how the new Taxonomy Token Act could exempt crypto owners from reporting their capital gains.
The Taxonomy Token Act (TTA) that’s just reintroduced by a number of members of the US Congress last month is said to allow crypto owners from not reporting their capital gain to the Internal Revenue Service (IRS).
Speaking about it on the Consensus 2019 was the executive director of Coin Center, Jerry Brito. He said that the TTA will create a de minimis tax exemption for crypto transactions under $600, which means crypto owners are not required to report the gain as long as it is worth of under $600 in crypto.
Brito explained that the situation is parallel to how small gains on foreign currencies were required to be reported before the de minimis proviso was introduced in 1990s by the congress.
He added that crypto owners could technically be required to report the capital gains from using cryptocurrencies to purchase things, like laptop and plane tickets. In a legal perspective, regulators could choose to oblige crypto owners from reporting such things.
If passed, the new TTA, would not only exclude crypto from classification as security, but also provide regulatory certainty for the compliance and enforcement of crypto statutes as well as delimit the jurisdiction of the Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC), as reported by Cointelegraph.