Crypto Tax Bills

In recent news, New Hampshire, Indiana and Wyoming have sought approval for crypto tax bills regarding the legal acceptance of cryptocurrencies.

Two lawmakers in New Hampshire have proposed a bill that would legalize state-level government agencies to accept cryptocurrencies as a form of payments. House Bill 470 was proposed by Dennis Acton and Michael Yakubovich. Dennis Acton and Michael Yakubovich are newly elected Republican members of the New Hampshire House of Representatives, representing Rockingham 10 and Merrimack 24, respectively.

If passed, House Bill 470 would allow for “an appropriate third party payment processor that will process cryptocurrency transactions at no cost to the state.” State organizations would then be able to accept cryptocurrency and then the payment would be immediately converted into U.S dollars. The current plan only proposes the acceptance of bitcoin and there is no current plan to accept other cryptocurrencies.

This bill comes after a previous attempt to pass a similar bill to accept bitcoin for taxes. This former bill was proposed in 2015 and would have the state of New Hampshire partner with a cryptocurrency startup to accept payments.

House Bill 470 would put New Hampshire on the growing list of states that will allow cryptocurrency to be used as payment for tax and other expenses. New Hampshire is just one of many states that have adopted new state crypto tax legislation. The legislation proposal shows the growing acceptance of cryptocurrency as a legitimate currency. The more state legislation that is proposed, even if it does not pass, is one step closer to the nationwide and global acceptance of cryptocurrency.

Similarly, in Indiana, House Bill 1683 was filed and, if passed, will approve the usage of one or more virtual currencies to pay taxes, penalties, interests, costs, special assessments, or any other liabilities which are imposed under the bill. The payment will be immediately converted from cryptocurrency into US dollars at the time of the transaction. The bill was filed on January 24 and is awaiting approval from the Indiana House of Representatives. The bill was proposed by Representative Dan Forestal who is a member of the Democratic party in Indiana. He has been a member of the House of Representatives in Indiana since 2012.

Crypto Tax Bills

As the United States’s state most favorable to accepting cryptocurrency, Wyoming proposed a bill that would classify cryptocurrency as legal tender. The bill also creates three legal classifications of cryptocurrency. They are as follows: securities category, virtual currency, while others are classified as digital consumer assets. Digital assets will be legal property authorizing banks to hold and supervise them in trust fund custody if the bill is passed.

The bill is still in the approval process but is likely to take effect on March 1, 2019. On March 1, banks will have 60 days to provide services to cryptocurrency assets. This has been in the works since January 18, 2018, and shows a promising hope for more uniform acceptance of cryptocurrency.

Senator Ogden Driskill plans to transform Wyoming into the “Silicon Valley of blockchain technology.” He has been pushing cryptocurrency legislature and has already pushed two other bills that have been approved by the Wyoming state Senate.

With New Hampshire, Indiana and Wyoming, cryptocurrency is gaining traction from legislators as a legitimate form of currency. The classification of certain cryptocurrencies into different classifications is a huge step for legislators. This could set a precedent and serve as a template for other states and possibly the federal government. This can have a resounding effect on the US government’s opinion on cryptocurrency and the taxation of it. Although it is unlikely cryptocurrency will be allowed for official tender in the near term, the long term approval of cryptocurrencies has potential.

Not only are US states pushing for crypto tax bills, but other countries are also following along as well. The trend of global acceptance of cryptocurrency is on the rise with recent news of Denmark allowing government access to cryptocurrency trading data. To read more on that click here.

Sources:

  • https://legiscan.com/NH/sponsors/HB470/2019
  • https://ballotpedia.org/Michael_Yakubovich
  • https://dailyhodl.com/2019/01/24/with-new-bitcoin-bill-new-hampshire-joins-ohio-and-wyoming-in-crypto-friendly-trend-among-us-state-lawmakers/
  • https://bitcoinist.com/indiana-new-hampshire-cryptocurrency-taxes/
  • https://indianahousedemocrats.org/members/dan-forestal
  • http://iga.in.gov/legislative/2019/bills/house/1683
  • https://smartereum.com/47365/cryptocurrency-latest-update-cryptocurrencies-may-become-legal-tenders-in-wyoming-soon-as-senate-passes-bill-to-this-effect-cryptocurrency-as-a-means-of-payment/

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