Senator Cynthia Lummis has introduced a new crypto tax bill that could significantly change the rules for digital asset users in the U.S.
No More Taxes on Small Transactions
One of the key highlights of the bill is a $300 rule, which states that small crypto transactions, like buying lunch or coffee, will not require tax reports. This enables people to use digital assets like they do real money without worry of tax implications. There is a cap, however: the total tax-free gains per year must remain under $5,000. From 2026, the $300 will also be adjusted for inflation.
Fairer Rules for Miners and Stakers
The bill aims to assist crypto miners and stakers, individuals who enhance blockchain operations and earn tokens in return. Currently, miners and stakers often have to pay taxes as soon as they receive tokens, even if they do not sell them. With the new bill, taxes will be due only upon selling or using the coins. This helps avoid double taxation and makes it easier for individuals and companies to plan without sudden tax bills.
Easier Crypto Lending and Charity
The bill also supports crypto lending by extending the same tax rules applied to stock lending for digital assets. As a result, lending crypto temporarily will not count as a sale and will not trigger taxes. Additionally, the process for donating crypto to charity will be simplified, removing the need for a costly appraisal for commonly traded assets.
Lummis states this plan could generate around $600 million in tax revenue over the next ten years while importantly protecting innovation in the U.S.
