A new bill in the U.S. aims to simplify cryptocurrency taxation, including a tax exemption for small purchases made with crypto.
Tax Exemption for Small Purchases
The bill proposes to exempt transactions under $300, such as buying coffee or groceries, from taxable events, provided that total tax-free gains do not exceed $5,000 annually. The threshold will be adjusted for inflation starting in 2026.
Changes for Miners and Stakers
The legislation also offers a more practical tax schedule for crypto miners and stakers, taxing them only upon selling their assets instead of at the time of receipt. This is aimed at preventing tax burdens on unrealized income.
Benefits for Crypto Lending and Donations
The bill includes provisions that benefit crypto lending and donations. Loans of digital assets would not be treated as taxable disposals, and donors giving commonly traded tokens to charity would not be required to obtain costly appraisals.
The proposal is estimated to generate $600 million in revenue over a decade and aims to keep crypto innovation within U.S. borders. Although it did not make it into Trump’s new spending package, the author remains optimistic about its standalone passage.