Senator Cynthia Lummis is pushing for major tax changes related to digital assets with new laws that could raise about $600 million from 2025 to 2034. The proposed bill aims to make tax rules easier for crypto holders by not taxing transactions under $300 for capital gains. This exemption covers both the transaction value and the total gain, with a yearly limit of $5,000 and adjustments for inflation beginning in 2026.
The legislation also suggests that cryptocurrency gained from mining or staking will be taxed only when it is sold or exchanged, not when it is received. This change is meant to reduce taxes for crypto users and encourage more people to get involved in the digital economy.
The bill also includes important points like applying current securities lending rules to digital assets, creating a 30-day wash sale rule for crypto transactions, and letting traders and dealers choose mark-to-market treatment. Senator Lummis highlights that updating the tax code is important for the United States to stay competitive in global finance and innovation.
Lummis called the legislation groundbreaking. She said it is fully funded and aims to remove bureaucratic hurdles while creating practical rules that match the realities of digital technologies.
