U.S. Senator Cynthia Lummis has proposed changes to tax legislation aimed at simplifying cryptocurrency taxation and making it fairer.
Exemption for Small Transactions
One of the key proposals is to introduce a capital gains tax exemption for cryptocurrency transactions below $300. An annual limit of $5,000 would alleviate the need to track small purchases, such as coffee or groceries bought with cryptocurrency.
Preventing Double Taxation
Another important aspect of the amendment is changing how income from staking, mining, airdrops, and forks is taxed. According to the new rules, taxes will be applied only when the assets are sold or exchanged, preventing double taxation.
Impact on Crypto Users
If the amendment is passed, it could significantly simplify cryptocurrency use in everyday life. Users would be able to make small transactions without worrying about tax consequences. The tax rules for stakers, miners, and airdrop recipients will also become clearer and fairer, likely leading to improved regulatory clarity and reduced compliance burdens.
The amendment is currently under Senate review and has drawn attention as a potential game-changer in U.S. cryptocurrency law.
