Crypto Tax Relief for Small Transactions Challenges Congress

How to craft a new exemption for small crypto transactions will likely complicate the task of crafting bipartisan legislation codifying the tax treatment of digital assets, senators in both parties said at a Finance Committee hearing on Wednesday.

Creating a so-called de minimis exemption when paying taxes on crypto transactions would be “one of the hotly debated aspects” in a broader effort to clarify how the code treats digital assets, Sen. Ron Wyden (D-Ore.), the ranking member on the tax-writing panel, said.

Sen. Ron Johnson (R-Wis.), another tax writer, also acknowledged that any dispensation for small transactions would be one ...