U.S. Senator Cynthia Lummis, one of Capitol Hill’s most vocal supporters of digital assets, has introduced a new tax reform bill aimed at ending what she describes as outdated and unfair practices in crypto taxation.
In a recent statement, Lummis criticised the current system for penalising crypto users more heavily than those using traditional financial tools. “My new crypto tax law would end the discriminatory tax methods and provide a level playing field for digital assets,” she shared on X.
The proposed bill includes several major reforms. Chief among them is a de minimis exemption that allows up to $300 in tax-free crypto transactions, capped at $5,000 per year. This means everyday purchases—like groceries or coffee made with crypto—wouldn’t trigger capital gains taxes, removing a major hurdle to mainstream adoption.
Another key change would eliminate double taxation on staking and mining rewards. Under the new plan, holders would only be taxed when they sell their rewards, not when they receive them.
The bill also provides clearer tax treatment for crypto-related activities such as lending, charitable donations, and wash sales, aligning digital asset rules more closely with those governing stocks and other traditional assets.
Lummis’s legislation comes during “Crypto Week” in Washington—a coordinated push from both chambers of Congress to pass key bills focused on digital assets. Other measures under discussion include the GENIUS Act and the CLARITY Act, both widely supported by the crypto industry.
A dedicated hearing on crypto tax policy is scheduled for July 16, underscoring growing bipartisan support for regulatory modernisation. If passed, Lummis’s bill could mark a significant step toward creating a clearer and more equitable framework for millions of American crypto users.
