Senator Lummis Introduces Crypto Tax Reform Bill With $300 Exemption

U.S. Senator Cynthia Lummis has introduced a significant digital asset tax reform bill designed to create a balanced regulatory environment for the cryptocurrency industry. The legislation aims to update tax codes to better suit the rapidly evolving digital economy, ensuring that cryptocurrency users are not unfairly burdened. Key provisions of the bill include a $300 exemption threshold for minor transactions and the elimination of double taxation on mining and staking activities, which promotes fairness and operational clarity.

The bill also seeks to align the tax treatment of digital assets with that of traditional financial instruments, addressing issues such as lending, wash sales, and mark-to-market rules. Additionally, it proposes removing the requirement for valuation reports on charitable donations of digital assets, thereby simplifying compliance for donors. According to the Joint Committee on Taxation, this reform is expected to generate approximately $600 million in net revenue over the 2025-2034 period, demonstrating a balanced approach to innovation and fiscal responsibility.

Senator Lummis highlighted the necessity of adapting tax legislation to maintain the United States’ competitive edge in the global digital economy. The bill is currently open for public commentary, with the goal of expediting its passage and presidential approval, marking a significant advancement in crypto regulatory policy.