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Senator Cynthia Lummis has unveiled a new crypto tax reform bill aimed at easing digital asset taxation for everyday users, miners, and investors. This latest proposal includes a $300 de minimis exemption, mining relief, and other changes designed to simplify the complex process of reporting cryptocurrency transactions.
The proposed legislation seeks to provide a $300 exemption on capital gains taxes for all crypto transactions under this threshold, aiming to align digital assets with foreign currency rules already present in the tax code. This move aims to make everyday use of cryptocurrencies more practical for Americans by enabling them to claim up to $5,000 annually and reduce reporting burdens on small purchases.
Moreover, the bill introduces relief for mining and staking activities by shifting taxable events to the point of sale rather than when rewards are received. This change will help miners and stakers avoid premature tax bills on unsold or illiquid digital assets. The updated rule will eliminate double taxation that current tax framework imposes on non-cash earnings, ensuring that taxation is linked to realized gains rather than fluctuating market prices at the time of reward.
Furthermore, Senator Lummis’s proposal includes a mark-to-market election for crypto traders and dealers, mirroring rules in place for securities and commodities. While mandatory for dealers, this rule may be voluntarily chosen by traders for actively traded digital assets. This move aims to enhance tax consistency across financial sectors.
The bill also addresses charitable donations of cryptocurrencies by treating them like publicly traded securities, allowing digital asset donations without the need for a qualified appraisal. This change will encourage broader philanthropic use of crypto and eliminate bureaucratic delays in donation reporting.
Senator Lummis has called for public feedback to refine the proposal further, which is set to be brought before President Trump’s desk before the September deadline.
Source: coincentral.com
