Opinion: Completely abolishing Cryptocurrency capital gains tax requires congressional approval and is unlikely to be achieved in the short term

Odaily Planet Daily News, Co-founder of Satoshi Action Fund Dennis Porter posted on X, saying: “Political reality: complete elimination of capital gains tax on Cryptocurrency requires congressional approval, and is unlikely to be achieved in the short term.” The main obstacle is the significant loss of tax revenue, which makes it difficult for such proposals to be included in the forthcoming tax legislation. Currently, the top priority of the current government is to restore the tax reduction policies of the Trump era. Any policy that threatens these tax reduction policies will be shelved. However, we can take a meaningful step forward. I strongly encourage the Bitcoin and digital assets industry to focus on ensuring a minimum tax-exempt threshold of $200 for Bitcoin and other digital asset transactions. The proposal is consistent with the existing $200 foreign currency exchange tax exemption. This is a more achievable and reasonable goal, with little impact on Trump’s ability to update tax policies. Americans who rely on Bitcoin and crypto assets for their livelihood should not have to report every small transaction for tax purposes, such as buying coffee, meals, or groceries. This is an overly burdensome task, and it is time to simplify the tax laws. I also know that both parties in Congress support this idea, and it will be crucial if we want it to become a reality. Two key considerations for minimum exemption:

1. It must be pegged to inflation to maintain long-term relevance.
2. It provides a practical, bipartisan solution that balances innovation and fairness. I believe that it is important to make progress by implementing reasonable policies on pro-bitcoin and digital assets. Note: While the impact on income is minimal, funding ‘pay for’ may be important to ensure that the minimum proposal is not canceled.