Cato: US capital gains rules dey 'paralyze' everyday BTC payments

One paper from Cato Institute talk say US Bitcoin (BTC) capital gains tax rules dey make everyday Bitcoin payments nearly impractical. Research fellow Nicholas Anthony talk say IRS dey treat Bitcoin as property, so anytime person spend BTC e fit trigger taxable capital gains event. Anthony point out the compliance wahala for normal purchases—like buying coffee with Bitcoin. Users fit need to track when dem get the BTC, figure cost basis, and calculate gains or losses for every spending transaction, then report am for IRS Form 8949 and Schedule D. E warn say the paperwork fit blow reach “over 100 pages,” wey fit discourage people from spending and possibly make “buy and hold” behavior stronger because long-term capital gains treatment. The paper propose policy options like remove capital gains on crypto payments or raise de minimis exemption above the previously discussed $200 threshold under the Virtual Currency Tax Fairness Act. The author say $200 too small for typical day-to-day consumer use. Timing dey important for traders: the discussion come as US enforcement dey tighten, including expanded IRS reporting and broker data cross-matching, while lawmakers dey debate de minimis relief. Net effect: dis na tax and compliance debate wey fit shape the wider story of BTC as “spendable money” versus a “hold” asset, but e no likely to cause immediate big price shock to BTC.