news 
Senator Cynthia Lummis has introduced groundbreaking legislation aimed at modernizing crypto tax rules and encouraging innovation within the digital assets space. The proposed bill seeks to exempt small-scale crypto transactions from taxes, effectively eliminating the issue of double taxation for miners and stakers.
In a move that is likely to be welcomed by the crypto community, Senator Lummis’ proposal would exempt transactions valued under $300 from capital gains tax. This de minimis exemption would apply both to the transaction value and total gain, with an annual cap of $5,000 and inflation adjustments commencing in 2026.
One of the key provisions of the bill is a change to the tax treatment of income earned through mining or staking. Under the proposed measures, this type of income would be taxed only when it’s sold or exchanged, rather than at the point of receipt. This move is designed to end the practice of double taxation that has been plaguing miners and stakers.
Senator Lummis emphasized the importance of updating tax laws to support the growth of digital assets, stating that an overhaul of the tax code that aligns with the real-world functioning of digital technologies is crucial for maintaining America’s position as a global leader in innovation and finance.
Source: cryptobriefing.com
