I would support getting rid of the capital gains tax all together in any case, but the political hurdle there is convincing people who think "this will only benefit fat cats" that it is a good idea.
Someone making a little money off of crypto is not a hedge fund. If you are trading intelligently, you are using a mixture technical analysis, fundamentals, and psychology. The short of the long of it is you are trading something volatile in a reasonable way then you are trading often and in small units (also avoiding slippage). That is very large transaction counts.
The amount of paper work this generates for both the trader and the IRS is not worth it for these small portfolios. The alternative is incentivizing people to trade less intelligently, asking them to hold positions they don't want to hold to reduce their transaction count, or asking them to use larger trades that allows high frequency traders to get more slippage off of them and exposes them to short term volatilizes.
Now I want to encourage more people to buy and trade crypto because I think USD is the biggest scam of all. Every argument people have for crypto being a scam 100% applies to USD too. The difference is someone is actively printing it and giving it to major banks. Which is ironic because if the public actually cared about "going after fat cats" you would think they would care about that. So definitively more of a scam. And I want to increase people's options to get away from it (USD). The more universally people own some small amount of crypto the more liquid it will become and the more people have realistic options outside of USD. The less monopoly you give someone the less power you give them over you.
So I think it is a moral and societal good for there to be more people who have some interaction with crypto. It diminishes the value of government's money printer when their currency doesn't have an absolute monopoly on the concept of value.
But making people deal with a large volume of accounting in an environment with shifting standards is essentially asking them to behave like formal financial institutions just for trading a small amount of crypto is a detractor.
So we should remove that detractor when it's not even going after "fat cats" people with vindictive politics are so eager to "go after".
Some might say 50K is kind of high. My point is it should be somewhere bifurcating small investors trading a couple thousand and hedge funds managing billions. I think that bifurcates the two groups pretty effectively.