‘Bitcoin taxes make no sense’: Washington think tank argues US rules hinder everyday payments
The Block
The Cato Institute argues that U.S. tax policies treating bitcoin as property discourage its use as an everyday currency.Summary
The Cato Institute argues that current U.S. tax regulations create significant obstacles for using bitcoin as a daily medium of exchange. By classifying bitcoin as property rather than currency, the IRS requires users to calculate and report capital gains or losses for every individual transaction, creating an administrative burden that effectively discourages its use for small purchases. To address these issues, the think tank suggests policy reforms, such as implementing a de minimis tax exemption for small transactions or eliminating capital gains taxes on crypto payments entirely.
(Source：The Block)