Bill proposal to eliminate taxes for small BITCOIN transactions – a step closer to BTC as currency?

The proposed legislation seeks to reduce friction in the usage of bitcoin as a daily currency.

A bipartisan bill would exempt bitcoin transactions from tax obligations if the associated capital gains are $200 or less, seeking to incentivise the digital currency’s usage as a medium of exchange in the U.S. economy.

Currently, any gain obtained from the sale of cryptocurrency must be reported as a taxable income regardless of the size or purpose of the transaction.

Currently using bitcoin as a payment method entails a sale for the Internal Revenue Service (IRS) as the payer disposes of part of its BTC holdings in exchange for a good or service. If the funds being spent had been acquired at a lower U.S. dollar price, the difference would be characterised as capital gains, of which reporting and taxing would be required.

Is this a step closer for using BTC as a form of currency in the US?