The Wyoming senator revives an initiative to modernize tax regulations on digital assets, aiming to reach President Trump’s desk.
On July 3, Senator Cynthia Lummis introduced a bill to amend the tax treatment of digital assets. The Republican from Wyoming aims to put an end to what she calls outdated policies that hinder innovation in the cryptocurrency sector.
The new legislative initiative represents a renewed attempt to bring regulatory clarity to the industry. Lummis emphasized the urgency of updating U.S. tax policies to remain competitive in the global digital economy.
The proposed bill contains provisions that are nearly identical to those she tried to include in the broader “One Big Beautiful Bill Act” earlier this week. The tax reform seeks to remove several burdens currently weighing on American taxpayers.
In an official statement, Lummis declared:
“We cannot allow our archaic tax policies to stifle American innovation, and my legislation ensures Americans can participate in the digital economy without inadvertent tax violations.”
$300 exemption threshold for transactions
One of the provisions introduces a $300 tax exemption threshold for cryptocurrency transactions, with a $5,000 yearly cap and inflation adjustments starting in 2026. This measure acknowledges the impracticality of tracking every small transaction in digital assets, such as buying a coffee with Bitcoin.
“The $300 threshold strikes a reasonable balance between tax compliance and the practical usability of digital assets as a medium of exchange,” the official statement reads.
Eliminating double taxation for miners and stakers
Another cornerstone of the tax reform addresses the elimination of double taxation for miners and stakers. For mining and staking activities, income recognition would be deferred until the produced assets are sold or exchanged, rather than at the time they are first received.
This provision represents a significant shift in how cryptocurrency production activities are taxed, offering greater clarity for industry participants.
