Crypto Bill Could Ease Tax Burden on Bitcoin Transactions

Polis hopes that "by cutting red tape and eliminating onerous reporting requirements, it will allow cryptocurrencies to further benefit consumers and help create good jobs."

Schweikert noted that while cyrptocurrencies are used all over the world for everyday transactions, the U.S. has fallen behind in adopting and regulating this technology. "With this simple legislative change, anyone can make digital payments to buy a newspaper or a bike without worrying about tax code challenges," he said in that statement.

Jerry Brito, executive director of Coin Center, a think tank, praised the bill, noting it would treat cryptocurrencies similarly to foreign currencies.

"Not only will this create a level playing field for digital currencies, it will also help unleash innovation on applications like micropayments, which can consist of dozens of transactions per minute and thus are difficult to square with the current law," Brito said in a statement.

Cryptocurrency investors would still have to report gains on transactions over $600 as capital gains.

"There are many other transactions above $600, such as getting in and out of investment positions, on which capital gains tax will be owed. Today, you are responsible for keeping track of and accurately reporting every cent of gain," Brito said in a blog entry.

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