Senator Cynthia Lummis and ex-Congressman Mike Rogers aim to simplify the use of Bitcoin for ordinary transactions, such as purchasing coffee or groceries. At present, even small-scale Bitcoin deals may call for tax reporting, which many find too complex and deters users from making Bitcoin an integral part of their daily lives.
They recently assisted in passing the GENIUS Act, a bill that is aimed at making stablecoins have well-defined rules. The act wants to safeguard consumers without inhibiting innovation. It makes sure that firms that issue the digital coins abide by good rules and have sufficient financial buffers.
While the GENIUS Act is a big achievement, Lummis and Rogers say it’s just the beginning. They believe Congress must also create clear definitions for different types of digital assets. Some digital assets should be treated like commodities (such as gold), while others should be treated like securities (such as stocks). This would help businesses know which rules to follow and give regulators more clarity.
States such as Wyoming and Michigan are already at the forefront of crypto-friendly legislation. Michigan just recently enacted a “Cryptocurrency Bill of Rights” and suggested establishing a state government-run crypto reserve. Wyoming has enacted more than 30 crypto-specific laws, demonstrating how states can be quicker than the federal government.
The lawmakers also want to end “double taxation” on Bitcoin, such as taxes both when it’s mined and when it’s sold. They’re pushing to fix corporate tax rules that currently hurt Bitcoin holders.
Also Read: Senator Lummis Says Flawed Tax Rules Unfairly Target Bitcoin
