Recently, an increasing number of lawmakers in the United States have discussed the cryptocurrency market, with SEC chairman Gensler expressing outrage and Senator Elizabeth Warren calling for greater regulation of the new field. However, there is an urge to somehow reduce the tax burden for people connected to cryptocurrencies.
Recently, one US Senator advocated exempting Americans from paying taxes whenever cryptocurrency ownership changes hands. However, in this instance, we are discussing tiny transactions. Senator Patrick Toomey (R-Pennsylvania) joined Senator Kyrsten Sinema (D-Arizona) in seeking a tax exemption for bitcoin users who make small investments or transactions. We are discussing reporting all transactions under $50 or those in which consumers earn less than $50.
It is important to note that this law relates to prior House of Representatives measures of a similar nature. If implemented, it will be able to eliminate the burden associated with tiny transactions that are of little interest to tax authorities. Toomey stated, "Digital currencies can become a normal part of Americans' daily lives, and our present tax law must reflect this."
This legislation will make it easier for consumers to utilize cryptocurrency as everyday payment by exempting minor personal transactions from taxation. In other words, you will no longer need to go to the tax office and fill out a declaration after purchasing a cup of coffee with cryptocurrency.
The Internal Revenue Service (IRS) website states: "When you sell virtual money, you must record capital gains or losses and pay taxes." According to proponents of cryptocurrencies, this norm was one of the impediments to using cryptocurrencies as an alternative payment method in the United States. The new legislation will encourage the use of virtual currencies for retail payments, subscription services, and microtransactions. Additionally, it will help in the creation of decentralized blockchain infrastructure.Despite its clear advantages, the new bill faces challenges in Congress. Given the August recess of the United States Congress, it is doubtful that significant changes to the turnover of cryptocurrencies will be approved until the following year.
Regarding the technical outlook for bitcoin, the balance of power has shifted slightly toward sellers. In the case of a further decrease in the trading instrument, speculators will defend the closest support around $20,720, which plays an important role. Its collapse and consolidation below this range will cause the trading instrument to return to the lows: $19,960 and $19,230, which are close to $18,625. If the demand for bitcoin resumes, it will be necessary to break above $21,430 and $22,184 to establish an upward trend. Fixing higher will bring the trading instrument to the highs of $23,070 and $23,600, which are close to the $24,280. A further-off objective will be the $25,780 region.
Ether purchasers missed out on a big support level of $1,490 and must now bid farewell to $1,390 if they do not exhibit activity there. If the pressure on ETH persists and $1,390 is broken, the bulls will not proclaim themselves until $ 1,320, the next key mark. Greater support is observed at $1,150. It is only possible to discuss the continuation of ether's growth until the resistance returns to $1,490. Only after growth above this level can we anticipate a sharper surge with the repeat of the highs of $1,650 and $1,740, as well as the possibility of constructing a medium-term upswing. A return to $1,740 and consolidation at that level will spur new purchases to update the $1,830 resistance, for which a fierce battle will resume.
