WASHINGTON, DC – In 2009, BitCoin was created and introduced to the world as the globe’s first cryptocurrency.
Today, one bitcoin can be worth more than $40,000, quite an increase from the $615 valuation just five years ago.
In its simplest form, cryptocurrency is an electronic trading system where digital coins are used to transfer value from one person to another. These coins, limited in existence, are traded more like a commodity than a currency.
That’s why Rep. G.T. Thompson (PA-15), the Ranking Member of the House Agriculture Committee is warning of unintended consequences in the current Reconciliation bill moving through Congress.
Since crypto is known as a commodity, it is under the jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than the Securities and Exchange Commission (SEC) which places it right in the middle of the House Ag Committee.
“We would probably be the only country to (tax) cryptocurrency” Thompson explains Congress proposed to use the tax to help fund the bipartisan infrastructure bill as pay for.
In Central America, El Salvador earlier this month became the first country to switch its entire currency to Bitcoin.
Regulating the currency will be important Thompson adds, but taxing it today would be might be akin to getting the buggy in front of the horse.
(SOURCE: All Ag News)
