The Cato Institute recommends that the U.S. eliminate capital gains taxes on cryptocurrencies to foster monetary competition.

According to Cointelegraph, the Cato Institute—a public policy think tank based in Washington, D.C.—stated that the U.S. should eliminate capital gains taxes on cryptocurrencies such as Bitcoin to reduce taxpayers’ filing burdens and foster monetary competition. Nicholas Anthony, a researcher at the institute, noted that the current tax regime discourages the use of cryptocurrencies as a medium of exchange, since users may trigger taxable events—and increase reporting complexity—each time they use cryptocurrency to purchase goods or services. The report also suggested alternative approaches, including exempting payments for goods and services from capital gains taxation or establishing a minimum threshold for taxation.