Senator Lummis Introduces Crypto Tax Bill With $300 De Minimis Rule

Senator Cynthia Lummis, a leading member of the Senate Banking Committee’s digital assets subcommittee, has introduced a comprehensive cryptocurrency tax legislation proposal. The bill, revealed on July 3, 2025, aims to create a clear and equitable digital asset tax framework in the United States. This initiative follows the failure of the proposal to be included as an amendment in the One Big Beautiful Bill Act, a major tax and policy bill recently approved by the Senate and awaiting final House approval.

The legislation seeks to amend the Internal Revenue Code of 1986, focusing on several key areas. Notably, it introduces a de minimis rule, exempting digital asset transactions and capital gains of $300 or less from taxation, with an annual cap of $5,000. This rule is designed to address the practical challenges faced by individuals engaging in small crypto transactions, making the tax code more user-friendly and less burdensome.

Another significant aspect of the bill is the elimination of double taxation for crypto miners and stakers. This measure ensures that these participants are not unfairly penalized for their activities, promoting a more equitable tax environment. Additionally, the bill advocates for tax parity, treating digital assets similarly to other financial assets, which aligns with the broader goal of integrating digital assets into the existing financial framework.

The legislation also proposes expanding securities lending rules to include digital assets, clarifying that digital asset lending is generally not a taxable event. This provision aims to provide clarity and certainty for market participants, fostering a more stable and predictable regulatory environment.

Senator Lummis emphasized the importance of updating the tax code to embrace the digital economy rather than burdening its users. She stated, “In order to maintain our competitive edge, we must change our tax code to embrace our digital economy, not burden digital asset users. This groundbreaking legislation is fully paid-for, cuts through the bureaucratic red tape and establishes common-sense rules that reflect how digital technologies function in the real world.”

Lummis’ bill joins other notable digital asset regulation efforts in the U.S., including proposals for crypto market structure and stablecoin regulation. These initiatives reflect a growing recognition of the need for comprehensive and forward-thinking policies to govern the rapidly evolving digital asset landscape.

The senator has welcomed public comments on the bill, indicating a commitment to transparency and inclusivity in the legislative process. This approach is likely to foster broader support and engagement from stakeholders, ensuring that the final legislation is well-rounded and effective.

In summary, Senator Lummis’ crypto tax bill represents a significant step towards creating a more favorable and coherent regulatory environment for digital assets in the United States. By addressing key taxation issues and promoting fairness and clarity, the legislation aims to support innovation and growth in the digital economy.