The benefits of blockchain technology for small businesses

Yesterday was the hearing of the US Congress, entitled “Building Blocks of Change: The Benefits of Blockchain Technology for Small Enterprises”. Four participants discussed with a group of government officials about various aspects of the blockchain.

The main conclusion of these discussions was that the crypto industry is sending more regulatory clarity.

For example, one of the participants highlighted the complexity of accounting for how cryptocurrencies are used.

“Calculating taxes for crypto is a nightmare”,

said Marvin Ammori, a member of the General Council of Protocol Labs.

“The tax treatment is very complicated. For example, if you want to buy coffee with Bitcoin this morning, you should keep track of how much you paid for Bitcoin and how much it was worth at the time you spent it and pay the capital tax for each transaction. “

Ammori argued that a good approach would be to exempt taxes for small transactions:

“We could have a minimum tax exemption, which was proposed in the draft law for fiscal equity of virtual currency. I think all politicians should support this, “

he said.

The benefits of blockchain technology for small businesses need clarity

Ammori also requested additional clarity regarding the SEC and CFTC guidelines on cryptocurrencies.

Another participant, Jim Harper of the American Enterprise Institute, also expressed the view that clarity is needed from government agencies. These regulations should cover both the tax part and the general regulation in the crypto and blockchain space.

The congressional hearing took place one day after the US tax and tax agency, the IRS, held a crypto-industry summit in Washington, D.C., and discussed the topic of clearer regulation of the blockchain ecosystem.