House Panel Unveils Draft Crypto Tax Bill Ahead of Upcoming Hearing

A U.S. House panel has released a draft bill aimed at regulating cryptocurrencies and imposing taxes on them, ahead of a hearing scheduled for later this week.

The bill, which is still in its early stages, would impose a tax on cryptocurrency trading profits, with the tax rate varying depending on the length of time the assets are held. The tax rate would be 0% for short-term trades lasting less than one year and 50% for long-term trades lasting more than three years.

The proposed legislation also includes provisions for the reporting requirements of cryptocurrency exchanges, which would need to provide information on transactions involving U.S.-based taxpayers.