- New bill offers $300 crypto tax exemption for crypto daily purchases.
- Taxes on mined and staked tokens may only apply upon sale.
- Crypto lending, donations, and wash sales face tax reforms.
Senator Cynthia Lummis has introduced new legislation to simplify crypto taxation in the United States. The bill targets taxation on everyday crypto transactions, mining, staking, lending, and donations. It aims to support innovation as well as provide more clarity and flexibility to U.S. digital asset users.
Lummis’ Crypto Tax Reform Bill Favors Stakers, Miners, and Daily Users
The proposed bill contains a de minimis exemption on small crypto transactions for daily purchases. The transactions below $300 would not attract taxation, but the limit is $5000 per year. The threshold of $300 will be adjusted to inflation based on the market conditions from 2026.
This step could increase retail crypto adoption, particularly in payments such as coffee or groceries. It offers relief to users who face tax complications when using crypto as a currency. The bill simplifies the daily use of digital assets through the elimination of minor tax triggers.
The legislation also addresses issues faced by miners and stakers across the country. Taxes are imposed at the moment tokens are received, whether they are sold or not. The bill proposes to defer taxes until the time when assets are sold or used in transactions.
This shift can help crypto miners and node operators overcome cash flow limitations and better plan. It makes taxation correspond to realized gains rather than the token issuance. The bill aims to provide a more predictable environment for crypto-related businesses.
Also Read| UK Banker Proposes ‘Tax Crypto’ to Boost Stock Market Investment
Bill Features Wash Sale, Donations, Lending, and Reporting Reforms
The bill also proposes a new framework for digital asset lending. It aims to use the current securities lending regulations for crypto and enable temporary lending without creating a taxable event. This could increase crypto liquidity as well as promote participation in DeFi lending.
Moreover, it introduces a wash sale rule similar to that used for traditional stocks. Under the current system, crypto owners can sell at a loss and immediately repurchase the same token. The new rule introduces a 30-day period to avoid such tax tricks.
The bill also streamlines crypto donations, particularly to charities. The current process of donating digital assets is slow and costly because it involves third-party appraisals. This proposal removes this for actively traded tokens, which simplifies charitable contributions.
Moreover, the bill introduces an optional reporting method, mark-to-market accounting. This lets traders report income based on year-end asset values instead of the date of transactions. This may make it easier to file crypto taxes on active investors and high-frequency traders.
Also Read | UK Introduces Strict Crypto Reporting Rules for Firms Starting in 2026
Lummis Advances Crypto Tax Reforms After Failed Entry in Trump’s Bill
Senator Lummis previously tried to include this legislation in Trump’s “Big Beautiful Bill” but was unsuccessful. A previous draft aimed to avoid double crypto taxation for miners. The new version broadens the scope to include a wider set of use cases of digital assets.
The senator has now opened the proposal to public comment. She intends to improve the bill through community views before the next step in the legislative process. This step could attract wider bipartisan support in the next few months.
Also Read | Bitcoin Soars Past $106K as Senate Passes Trump’s $3.3T ‘Big Beautiful Bill’