Bloomberg Tax
Free Newsletter Sign Up
Bloomberg Tax
Welcome
Go
Free Newsletter Sign Up

Crypto Industry Likes Senators’ Tax Plans. Should You? (Podcast)

June 24, 2022, 8:45 AM

A sweeping cryptocurrency bill unveiled earlier this month addresses many of the biggest open questions for the young and volatile asset class, from sanctions compliance to stablecoin oversight.

Listen here and subscribe to Talking Tax on Apple Podcasts, Spotify, Google Podcasts, Stitcher, Megaphone, or Audible.

When it comes to the taxation of digital assets, the proposal from Sens. Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) would give the industry much of what it has been asking for. The bill would establish that cryptocurrency rewards created through the processes known as “staking” and “mining” would be taxed when the rewards were sold, rather than when they were created. It also includes a de minimis tax exemption and a narrower definition of brokers for cryptocurrency reporting requirements established in last year’s bipartisan infrastructure law.

On this episode of Talking Tax, we discuss the implications of the Lummis-Gillibrand bill with Seth Wilks, director of government relations at software company TaxBit, and Omri Marian, a tax professor at the University of California, Irvine, School of Law. Wilks discusses the rationale behind the de minimis exemption and other tax proposals, as well as why some things might change as the bill works its way through Congress. Marian explains why he considers the bill’s tax title to be “a complete and total surrender” to industry.

Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

To contact the reporter on this story: Erin Slowey at eslowey@bloombergindustry.com

To contact the editors responsible for this story: Patrick Ambrosio at PAmbrosio@bloombergindustry.com; David Jolly at djolly@bloombergindustry.com