[Cato Institute: The U.S. Should Abolish Cryptocurrency Capital Gains Tax to Promote Competition] According to a report by Golden Finance on April 16, Nicholas Anthony, policy scholar and researcher at the Cato Institute, stated in a report on Wednesday that capital gains tax (CGT) is hindering the use of alternative currencies like Bitcoin because the tax encourages long-term holding and adds additional reporting burdens. He advocated that the simplest solution is to completely abolish capital gains tax; another feasible option would be to exempt cryptocurrency and foreign currency transactions from capital gains tax, thereby 'removing the government's interventionist hand from the scales and allowing market competition to truly determine the optimal form of currency.'