US politicians want tax exemption for stablecoin payments

The daily use of stablecoins such as USDT and USDC could soon become significantly easier in the United States. Under the leadership of Donald Trump, Republican politicians are working on a law that makes stablecoins fiscally attractive for consumers and companies. At the same time, the crypto sector is gaining more legal clarity.

Stablecoins tax-free up to $200

The new legislation, part of the so-called GENIUS Act, should exempt small payments with stablecoins from capital gains tax. Transactions of up to $200 would become tax-free, meaning you no longer have to keep records for, for example, a coffee or an online purchase.

There will also be a tax deferral of up to five years on crypto income from staking and mining. With this, the Republicans want to put an end to the so-called “phantom income” problem, where people have to pay taxes on tokens that they have not yet sold.

Important: The rules only apply to strictly regulated stablecoins pegged to the dollar, such as USDT and USDC. Additional measures are intended to prevent abuse of the scheme.

Companies Dive into Stablecoins After GENIUS Act

The GENIUS Act, which was signed by Trump last summer, provides a clear legal framework for so-called ‘payment stablecoins’. Publishers must meet strict requirements for reserves, transparency and risk management. This creates room for innovation and consumers are better protected.

Big names such as Visa, Sony and Western Union are now fully committed to these new digital currencies. Visa is setting up a global advisory department on stablecoins, while Sony is working on its own dollar stablecoin for use within the PlayStation ecosystem in collaboration with fintech company Bastion. Western Union is also launching its own stablecoin on the Solana (SOL) blockchain.

America chooses crypto innovation

With these developments, the US under Trump is clearly opting for crypto innovation. The GENIUS Act makes stablecoins a full-fledged means of payment, while simultaneously removing tax barriers for consumers. By providing more clarity about the rules, adoption in the US can really gain momentum.