The Cato Institute recommends that the United States eliminate capital gains tax on cryptocurrencies to promote currency competition

Mars Finance reports that, according to Cointelegraph, the public policy think tank Cato Institute in Washington, D.C., states that the United States should eliminate capital gains taxes on cryptocurrencies like Bitcoin to reduce tax filing burdens and promote currency competition. Researcher Nicholas Anthony from the institute said that the current tax system suppresses the use of cryptocurrencies as a payment method because users may trigger taxable events when using cryptocurrencies to purchase goods and services, increasing reporting complexity. The report also mentions optional options including exempting capital gains tax on payments for goods and services or setting a minimum tax threshold.