Senator Lummis Introduces Bill to Modernize Crypto Tax Rules

U.S. Senator Cynthia Lummis has introduced a significant digital asset tax bill aimed at modernizing the regulatory framework for cryptocurrencies. The legislation is designed to create a more equitable environment for digital asset participants by addressing key tax challenges that have impeded industry growth. Senator Lummis highlighted the importance of updating tax policies to support the evolving digital economy while reducing compliance burdens on users.

The proposed bill includes several critical provisions. One of the key elements is a $300 minimum transaction exemption, which is intended to lower administrative overhead for smaller trades. Another significant provision targets the elimination of double taxation on miners and stakers, aligning their tax treatment with that of traditional financial instruments. The legislation also promotes parity by applying consistent tax rules to digital assets and conventional financial products, including lending and wash sales.

The Joint Committee on Taxation has projected that this reform could generate approximately $600 million in net revenue over the 2025-2034 period. Additionally, the bill aims to facilitate charitable contributions by exempting certain donations from valuation reporting, thereby enhancing transparency and compliance within the crypto sector.