I don't think a bill like this can pass.
It creates a loophole that allows anyone to not pay taxes on any crypto as long as they launder the money through vendors in $50 increments. The first people who do this will be the vendors themselves, selling product to themselves, but eventually the loophole would be opened up to others and a small fee taken to make the business model viable.
At the end of the day crypto can't really be taxed. By definition crypto is essentially a sovereign digital nation of city-states; each network with it's own rules and regulations. Regulations from the outside are irrelevant and ignored.
With this in mind it will start becoming obvious to people that being a citizen of their own country is actually synonymous with being a financial slave to that government. The entire concept of taxes isn't going to make sense when mainstream adoption rolls around. When crypto provides better infrastructure than the governments themselves, people are going to start renouncing their citizenship and refusing to pay this protection money.
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That is a great point. I think there would have to be some kind of a limit, like $50 a day or something like this. I agree, without any limitation, this would be a huge loophole resulting in most people not paying any capital gains.
I doubt most people would be renouncing citizenships. This would mean relocating. People generally do not like moving.