U.S. Congress wants to eliminate taxes on small crypto transactions

There's a new bill called the "Virtual Currency Tax Fairness Act of 2020" which aims to exclude crypto transactions under $200 from being taxed. This would change how cryptocurrencies are viewed since, right now, they're treated as private property, meaning all transactions are usually taxed. The lawmakers believe this is necessary due to fluctuations in exchange rates affecting people's income. If you make over $200 in profit, though, then that rule doesn't apply.

This bill if approved can be a good law that can be a big boost to the whole cryptocurrency industry. Had there been a united voice of the cryptocurrency industry, this is one legislative move that is really worth of our support. Let's hope that this will not be just gathering dust in the archive of Congress so there is a need for support from other legislators. In fact, we need a more comprehensive bill that can cover many aspects of the whole cryptocurrency industry so that vague and undefined aspects can be given more illumination with the end view of spurring more growth as well as proper recognition of the industry, and of course with corresponding responsibilities and accountability.

The wording of the bill is slightly confusing -- it makes it sound like all transactions valued under $200 will be exempted. I'm fairly sure that's not the case, based on these articles: https://www.law360.com/fintech/articles/1235320 https://www.coindesk.com/us-lawmakers-try-again-on-tax-relief-for-small-crypto-payments Rather, up to $200 per year in personal transactions will be exempted. That's why Neeraj Agrawal is talking about such small amounts:

Big boost because crypto users will not have to pay tax on transactions that do not exceed $200 in total per year? You have to be kidding me, this is not a third world country where $200 means something, and this can only help total beginners who collect coins from faucets or send each other a tips in Doge. I do not see how European laws made a big boost because they allowed anonymous cards (250 EUR) per user, or selling/buying crypto up to a certain amount without any ID even on a daily basis. Your statement that it will help "whole cryptocurrency industry" is complete nonsense.

Never studied the US Law and I'm not very familiar with the English legal language either, but the proposed bill states the following: "The preceding sentence shall not apply if the gain which would otherwise be recognized on the transaction exceeds $200.", and it really confuses me too. Is it yearly, monthly or per transaction gain? Wouldn't a "per transaction" case lead to the abuse of this bill by creating only sub-$200-profit transactions so all of them would be a subject to the stated exception? I'm pretty interested to know what a native American's view is regarding this bill and how they interpret it. Here are the lines from this PDF for reference:

Doesn't it say something different than the article and people here are understanding? My take is people won't have to pay taxes on transactions where they made $200 in profit or less. So if someone bought 1 BTC for $10000 and would buy something for $10150 after BTC price had increased to $10150, they wouldn't have to pay taxes on the $150.

Yes, up to a total of $200 in gains per year. I am confident the IRC does not allow for endless de minimis tax exemptions taken in this manner, though. We can't just gain $199 per transaction over and over without triggering tax liability. This is aimed at very small transactions and accordingly, very small gains.