US Bitcoin (CRYPTO:BTC) tax policy is drawing renewed criticism as advocates argue it is falling behind more competitive international frameworks.
The debate has intensified as regulators continue to focus on supervising thousands of crypto tokens rather than revising core tax rules.
Industry figures say this approach risks slowing Bitcoin adoption in the world’s largest economy.
Bitcoin advocate Pierre Rochard said the current system undermines long-term saving and everyday use.
Bitcoin tax policy in the US is lagging Germany and many other countries. We don’t need more tokens and stablecoins, we need tax reform.
Pierre Rochard said.
Rochard argued that the US tax code penalises behaviour that policymakers often claim to support.
In the United States, Bitcoin is classified as property for tax purposes.
This classification means each sale or transaction is treated as a taxable event.
Capital gains tax applies whether Bitcoin is sold for profit or used for routine purchases.
Even small payments, such as buying food or services, can create tax reporting obligations.
Critics say this discourages everyday spending and practical Bitcoin use.
Long-term holders in the US also face capital gains tax when they eventually sell.
Germany has adopted a contrasting approach that many Bitcoin supporters consider a benchmark.
German residents pay zero tax on capital gains if Bitcoin is held for more than one year.
The exemption applies whether Bitcoin is sold for euros or spent directly.
Supporters say the rule encourages saving rather than short-term speculation.
The German framework also simplifies compliance for individual users.
Comparisons between the US and Germany have fuelled calls for reform in Washington.
Advocates argue that tax clarity matters more than expanding token regulation.
Switzerland is often cited as another favourable jurisdiction for Bitcoin holders.
Capital gains in Switzerland are generally tax-free for individuals investing personal wealth.
Supporters say this treatment has helped attract crypto firms and skilled professionals.
Analysts warn the US could lose capital and talent to more accommodating countries.
Some economists argue restrictive tax rules may reduce innovation at the consumer level.
Lawmakers have yet to signal major changes to Bitcoin capital gains treatment.
The issue highlights a widening policy gap between the US and parts of Europe.
Advocates say without reform the US may struggle to position itself as a Bitcoin leader.
At the time of reporting, Bitcoin price was $88,550.99.