Roughly three months ago, I wrote an article for The Daily Chain describing how multiple states in the US had started to push for better rules and regulations surrounding the sales of cryptocurrency. In my previous article, I wrote about how Denver was working to roll out blockchain voting and a Colorado Governor signed an act for new regulations relating to cryptocurrency. Since writing this article three months ago, Denver Colorado has started using blockchain voting apps for local elections and has had some success. Currently we are on a state to state system for cryptocurrency legislation, which is not an overly productive system, especially for something like cryptocurrencies and blockchain technology. While this is not an overly productive system in the US, many states like Colorado choosing to use this technology is very powerful for setting a nationwide example.
North Carolina In Favour
Recently, at the US House Ways and Means Committee on June 4th , North Carolina congressman Ted budd voiced his opinion in favor of two cryptocurrency related bills, “two bills he hopes will receive bipartisan support” as stated by Daniel Kuhn from CoinDesk. The two bills Congressman Budd was speaking in favor of are the Cryptocurrency Tax Fairness Act and the Virtual Value Tax Fix of 2018. Budd is overly concerned about the complicated tax process that is currently in place, as he feels this needs to be changed to encourage innovation. Daniel Kuhn from CoinDesk reported that the “congressman also announced he will provide an updated version of his own legislation, the Virtual Value Tax Fix, to ensure that digital assets are recognized as property eligible for the like-kind exchange tax deferral under Section 10(31) of the Income-Tax act” hoping to cut down on the double taxation that currently takes place in the cryptocurrency industry.
Commenting on the current retail process of actually using cryptocurrency in the sale of goods, congressman Budd stated that “an effective sales tax of nearly 40% penalizes the use of digital units of commerce) realizing that the current regulatory framework in the US is leaving many consumers and businesses behind in terms of technological advancements. Budd realizes the current system is entirely flawed, and states that “the use of digital assets is already treated as a sale of the asset, even though the economic reality of the transaction is a purchase of simple consumer good” in regard to actually using cryptocurrency to pay for something at a store.
Congressman Budd commented on how difficult the current processes are for taxing and documents of cryptocurrency purchases, and essentially hopes to clarify this process through regulation. Through better regulatory framework, Budd hopes to provide clear and easier guidelines for how cryptocurrency taxes should be handled. Max Boddy from CoinTelegraph stated that “Budd also briefly remarked that blockchain technology development is a national economic issue, saying that it would be a problem if blockchain innovation moved primarily to countries such as Malta and Singapore” realizing that a lot of business have already left the US.
In summary, the United States right now still makes it very hard for the everyday consumer, or business to use and properly document taxes on cryptocurrency transactions and usage. Right now, the regulatory framework highly discourages businesses to move to the US, and instead businesses are looking internationally where the guidelines are clear. It is great to see people in the government like congressman Ted Budd from North Carolina speaking out on behalf of the cryptocurrency community, calling for proper regulation where it is needed. Through activism and pressure from the states and people, hopefully cryptocurrency regulation in the United States will begin to shift towards more clear guidelines.
About The Dragon
“The Dragon” is a technical analyst and writer who discovered bitcoin back in 2016. Intrigued with the technical aspects of the ecosystem, the concept of mining is what initially grabbed the Dragon’s interest. Along with currently studying computer science the Dragon is focused on bringing quality and helpful content to the Cryptocurrency space.
The Daily Chain – Inform. Educate. Succeed.