Odaily News Dennis Porter, co-founder of Satoshi Action Fund, wrote in an article on X: “Political reality: Completely eliminating capital gains tax on cryptocurrencies requires congressional approval and is unlikely to happen in the short term.
The main obstacle is the significant loss of tax revenue, which makes it difficult for such a proposal to be included in the upcoming tax bill.
Right now, the current administration's top priority is restoring the Trump-era tax cuts. Any policy that threatens those tax cuts will be put on hold.
However, we can take a meaningful step forward. I strongly encourage the Bitcoin and digital asset industry to focus on ensuring a $200 minimum tax exemption for Bitcoin and other digital asset transactions.
The proposal would align with the existing $200 foreign currency transaction tax exemption, a more achievable and reasonable goal that would have little impact on Trump’s ability to renew the tax cuts.
Americans who live off of Bitcoin and digital assets shouldn’t have to report every small transaction, such as the purchase of coffee, meals, or groceries, for tax purposes. This is an overly burdensome task, and it’s time to simplify the tax code.
I also know that there is bipartisan support for this idea in Congress, which will be critical if we want it to become a reality.
Two key considerations for de minimis exemptions:
1. It must be indexed to inflation to remain relevant over the long term.
2. It offers a practical, bipartisan solution that balances innovation and fairness.
I believe it is important to make progress by promoting sensible pro-Bitcoin and digital asset policies.
PS: While this will have a small impact on revenues, it may be important to fund the ‘pay for’ to ensure the minimum proposal is not scrapped.”