TechFlow News, April 16: According to The Block, the Washington-based think tank the Cato Institute published a critique of the U.S.’s current Bitcoin tax policy. Researcher Nick Anthony pointed out that the existing tax framework—which classifies Bitcoin as “property” rather than “currency”—requires users to calculate capital gains or losses for every transaction, including routine small-value purchases. This makes tax filing extremely cumbersome and effectively hinders Bitcoin’s adoption as a payment instrument.
In response, the Cato Institute proposed several reform measures, including fully eliminating capital gains taxes on cryptocurrency payments and introducing a de minimis exemption threshold for small transactions. The report also referenced the existing “Virtual Currency Tax Fairness Act,” which proposes exempting cryptocurrency transactions under $200. However, Anthony contends that this threshold is too low to meaningfully cover typical consumer spending levels. Currently, the Trump administration has expressed support for establishing a de minimis exemption for cryptocurrency transactions and will continue evaluating related legislative options.
