- Lummis’ bill creates a $300 crypto spending exemption per transaction with $5,000 annual cap to simplify small daily purchases.
- Miners and stakers pay taxes only when selling rewards, not upon receipt, preventing immediate tax burdens on earnings.
U.S. Senator Cynthia Lummis introduced legislation targeting cryptocurrency tax requirements. The bill aims to modify current regulations affecting digital asset users. It addresses specific areas where Lummis argues rules create unfair burdens or hinder practical use.
One provision establishes a de minimis exemption for small transactions. Individuals could spend up to $300 in crypto per transaction without triggering taxable gain reporting.
This exemption applies if total annual gains from such small payments stay below $5,000. The $300 threshold would adjust for inflation starting in 2026. This rule seeks to make routine crypto spending simpler.
The tax code shouldn't punish Americans for using new technology. My bill fixes the broken rules around bitcoin and digital assets. MORE ⬇️ https://t.co/1Wo6zjY8wY
— Senator Cynthia Lummis (@SenLummis) July 3, 2025
The bill alters tax treatment for cryptocurrency miners and stakers. Present law often taxes block rewards when received, creating immediate tax liability regardless of sale. Lummis’s proposal shifts this taxation point to when the coins are actually sold or exchanged. This change aims to prevent double taxation and improve cash flow planning for network participants.
Crypto lending receives parallel treatment under the proposal. Lending digital assets temporarily would not be treated as a taxable sale. This aligns crypto lending rules with existing treatment for traditional stock lending activities.
Charitable donations of cryptocurrency also face simplified rules. Donors giving widely traded digital assets would no longer need formal appraisals to claim tax deductions. This reduces administrative costs for charitable contributions.
Lummis states these adjustments could generate approximately $600 million in federal revenue over ten years. She contends modernized rules support technological progress within the United States.
The objective includes keeping developers and businesses operating domestically rather than relocating due to tax complexity. The bill is open for public commentary following its introduction.
