In a United States congressional meeting titled "Building Blocks of Alter: The Benefits of Blockchain Technology for Small Businesses," i of the testifying witnesses chosen out current cryptocurrency taxation expectations for their overbearing complexity.

"Doing your taxes for crypto is the worst nightmare," said Michael Ammori, General Counsel of Protocol Labs, answering a question from U.South. Representative Steve Chabot on blockchain's status in terms of whether or not the tech is prepare for mass adoption.

A gathering on blockchain'due south potential and application

On March 4, parties gathered for a hearing on blockchain's impact on pocket-size businesses.

Four witnesses sat in front of a console of government officials, discussing diverse aspects of blockchain, the technology fabricated famous for underpinning Bitcoin, crypto's largest asset. Cryptocurrency itself also headlined diverse conversations.

A stab at the U.S. crypto revenue enhancement scene

Although Ammori said blockchain is gear up for mass adoption, he stated the demand for a few technical changes, including enhanced user interfacing.

Moving on to the legal scene, Ammori mentioned tax difficulties with the Internal Acquirement Service, or IRS. "The tax handling is very complicated," Ammori pointed out.

Using an example, Ammori said:

"If you wanted to spend Bitcoin on a coffee this morning, you'd have to go along track of what you lot paid for the Bitcoin and how much it was worth the moment you spent it, and pay the capital proceeds or loss on every single transaction."

Describing a solution, Ammori proposed a form of exemption. "If we could have a de minimis revenue enhancement exemption, which has been proposed — the Virtual Currency Taxation Fairness Human activity — I think all of you should support that," he said.

Ammori also petitioned for additional clarity surrounding guidelines from the Securities and Exchange Commission, or SEC, and the Commodity Futures Trading Commission, or CFTC.

Prior to Ammori's comments, witness Jim Harper of the American Enterprise Institute besides expressed a need for clarity from government agencies — for taxes also every bit overall regulation in the crypto and blockchain space.

Today's hearing follows a March 3 crypto summit at the IRS in Washington, D.C. that similarly aimed to bring regulators up to speed on the latest developments in the industry.

In late 2022, the IRS released several new guidelines on cryptocurrency revenue enhancement reporting, although the guidelines were met with mixed reviews. Adoption in the grade of daily crypto transactions might sit on the sidelines until the IRS addresses the situation.