U.S. Senator Cynthia Lummis introduced legislation aimed at modifying tax requirements for cryptocurrencies. The bill seeks to simplify rules for digital asset users.
Tax Exemptions for Small Transactions
One provision establishes a de minimis exemption for small transactions. Individuals could spend up to $300 in crypto per transaction without triggering taxable gain reporting. This exemption applies if total annual gains from such small payments stay below $5,000. The $300 threshold would adjust for inflation starting in 2026.
Changes in Taxation for Miners and Stakers
The bill alters tax treatment for cryptocurrency miners and stakers. Present law often taxes block rewards when received, creating immediate tax liability regardless of sale. Lummis’s proposal shifts this taxation point to when the coins are actually sold or exchanged, aiming to prevent double taxation and improve cash flow planning for network participants.
Simplified Rules for Charitable Donations
Charitable donations of cryptocurrency also face simplified rules. Donors giving widely traded digital assets would no longer need formal appraisals to claim tax deductions, reducing administrative costs for charitable contributions.
Lummis states these adjustments could generate approximately $600 million in federal revenue over ten years. She contends modernized rules support technological progress within the United States while keeping developers and businesses operating domestically.
