The Bitcoin Policy Institute (BPI) has released a new report highlighting the ongoing discussions in the US Congress regarding the Bitcoin de minimis tax exemption. This report comes at a critical time as Coinbase faces accusations related to cryptocurrency taxation, and pro-crypto Senator Cynthia Lummis pushes for legislative changes, as emphasized in the official statement.
Senator Lummis Advocates for Crypto Tax Provisions
Senator Lummis is advocating for a $300 de minimis provision to be included in the reconciliation package known as the One Big Beautiful Bill. Despite her efforts, the legislation was signed into law on July 4 without any crypto tax provisions. In response, Lummis introduced a standalone bill proposing a $300 transaction threshold and a $5,000 annual cap, aiming to address issues like double taxation for miners and stakers, as well as wash sale rules.
Revenue Potential of Lummis's Bill
The Joint Committee on Taxation has assessed Lummis's bill as revenue-positive, estimating it could generate around $600 million over the next decade. Additionally, during a Senate hearing on February 5, 2026, Treasury Secretary Bessent expressed a willingness to collaborate with Lummis's team on guidance related to the proposed legislation. Meanwhile, the House Ways and Means Committee is expected to release relevant legislative text following hearings on digital asset tax policy held on July 16, 2025.
Concerns Ahead of Midterm Elections
As midterm elections approach, the BPI warns that Congress may become increasingly preoccupied with electoral dynamics, potentially hindering the progress of complex tax legislation. With Senator Lummis set to leave the Senate in January 2027, there are concerns that if a legislative package does not materialize soon, the opportunity for its implementation could be delayed for years. The BPI emphasizes the importance of educating Congress and the administration about Bitcoin's significance to the US economy and the critical role of sensible tax policy in facilitating its growth.
In a recent interview, Senator Cynthia Lummis discussed ongoing efforts by US lawmakers to enable Bitcoin payments without incurring capital gains tax, a topic that contrasts with the current legislative challenges highlighted in the latest report.
