United States House of Representatives has introduced a tax bill, virtual value tax fix act of 2019. It will allow the exclusion of gain or loss on like-kind exchanges of virtual currency. Ted Budd, a Republican Congressman from North Carolina, decided to reintroduce this crypto tax bill.

The law will be a move to the Ways & Means Committee of the House of Representatives soon. There, it needs to be voted on and approved before it can move forward. According to Ted Budd, the law, if passed, could help crypto investors in several ways. The primary one is that it will prevent cryptos from getting double taxation under the Internal Revenue Code. People still treat the sale of tokens as the sale of assets. However, it has become a common scenario now. People use cryptos for buying goods, which implies it is money. Thus, this law can ease the use of crypto in the U. S.

As per the source, if passed, the bill will be added to other crypto legislation which is in Congress right now. One of them is a bill of Safe Harbor from Republican Tom Emmer. The Safe Harbor aims to bring more clarity on how the government can tax the forked crypto-assets. The bill does not intend to cut taxes off a hard-forked blockchain. It will rather provide investors who do not properly account for a hard fork in calculating their tax returns a safe harbor.