Senator Cynthia Lummis, Congress’s most vocal advocate for digital asset innovation, has proposed new crypto tax law to bring an end to discriminatory and obsolescent tax policies that harm crypto users and inhibit adoption.
In the interview, Senator Lummis reiterated that the existing tax system unfairly treats digital assets relative to traditional financial instruments. She also posted, “My new crypto tax law would end the discriminatory tax methods and provide a level playing field for digital assets.“
The bill calls for various significant amendments. First, it provides a $300 de minimis exemption for small crypto transactions up to $5,000 annually. This would enable users to make routine purchases such as coffee or groceries without burdening them with capital gains taxes.
Second, the legislation precludes double taxation on mining and staking rewards. The new plan would tax the users only once they sell their rewards, not when they are received.
Other reforms include more explicit tax regulations for lending, charitable contributions, and wash sales, synchronizing crypto tax treatment with that of conventional assets such as stocks. These changes will make digital assets easier and more secure to utilize and provide the IRS with a uniform framework.
The legislation is also one of a series of initiatives by lawmakers amid “Crypto Week” in Congress, during which the House and Senate are considering bills to help clarify and enhance U.S. policy on crypto.
As reported, House Republicans are lining up votes for several crypto-oriented bills, such as the GENIUS Act and CLARITY Act both of which are endorsed by the industry.
A July 16 hearing has also been planned to focus specifically on crypto taxation policy, CoinDesk reported.
With bipartisan momentum building and support increasing in Crypto Week, Senator Lummis’s tax bill has the potential to be a landmark moment toward making crypto more accessible, simpler, and fairer for millions of Americans.
