BlockBeats news, on April 16, according to Cointelegraph, the Cato Institute, a U.S. think tank, released a report stating that the U.S. government should eliminate capital gains taxes on Bitcoin and other cryptocurrencies to make them more practical for everyday use and to promote fair competition among different currencies.
Under current U.S. tax law, Bitcoin is classified as a capital asset, triggering a taxable event whenever users spend Bitcoin to purchase goods or services, requiring them to calculate and report capital gains. This results in hundreds of pages of tax documentation even for everyday small purchases, significantly increasing compliance burdens. Cato seeks to remove the current U.S. tax policy barriers that hinder the use of cryptocurrencies as money. Cato researcher Anthony emphasized: “Congress should simplify the tax code to make it easy for ordinary Americans to meet their obligations, which would greatly alleviate pressure during tax season and create a more competitive economic environment.”
According to a 2025 survey, 39% of U.S. cryptocurrency holders have used crypto assets to purchase goods and services, and there are currently approximately 11,000 merchants worldwide that accept Bitcoin payments.