Thanks for this. It's a great step in the right direction. Bitcoin transactions should not be taxed otherwise the currency is useless for transacting. Let them tax bitcoin options and trading of bitcoin just like they do currency traders. I believe the limit should be less than $20,000 per transaction for bitcoin should not be required for capital gains reporting. Still its going to take time to get something passed even at these levels. But you are right, if our government moves in this direction China will have to quickly join the bitcoin revolution or be left holding a big bag of us dollars and their own communist controlled fiat!