TechFlow reports that on April 16, according to Cointelegraph, the Cato Institute—a public policy think tank based in Washington, D.C.—stated that the United States should eliminate capital gains taxes on cryptocurrencies such as Bitcoin to reduce tax-filing burdens and foster monetary competition.
Nicholas Anthony, a researcher at the Cato Institute, noted that the current tax regime discourages the use of cryptocurrencies as a payment medium, since users may trigger taxable events—and increase reporting complexity—when using cryptocurrencies to purchase goods and services. The report also suggests alternative approaches, including exempting payments for goods and services from capital gains taxation or establishing a minimum threshold for taxation.
The Cato Institute has previously published research and policy positions on topics including Bitcoin, cryptocurrency regulation, privacy, and taxation, and its members have testified before relevant U.S. congressional hearings.
