The Cato Institute Calls on the U.S. Congress to Eliminate Bitcoin Capital Gains Tax to Promote Currency Competition

BlockBeats News, April 16th. According to Cointelegraph, the Cato Institute, a US think tank, released a report stating that the US government should abolish the capital gains tax imposed on Bitcoin and other cryptocurrencies to make cryptocurrency more convenient for everyday use and to promote fair competition between currencies.

The current US tax law classifies Bitcoin as a capital asset, so when users pay for goods or services with Bitcoin, it triggers a taxable event that requires the calculation and reporting of capital gains. This means that even small daily transactions could result in hundreds of pages of tax documents, significantly increasing compliance burdens. Cato hopes to eliminate the current US tax policy's hindrance to cryptocurrency's use as a currency. Cato researcher Anthony emphasized: "Congress should simplify the tax law so that ordinary Americans can easily fulfill their obligations, which will greatly ease the tax season pressure and create a more competitive economic environment."

According to a survey from 2025, 39% of US cryptocurrency holders have used cryptocurrency to purchase goods and services, and currently, there are approximately 11,000 merchants worldwide accepting Bitcoin payments.