The US Senate has begun extensive discussions on tax and spending legislation, with cryptocurrency regulation emerging as a central topic.
Lummis' Proposal on Crypto Taxes
Republican Senator Cynthia Lummis introduced an amendment aiming to reform what she calls the “unfair tax treatment” of digital assets in the US. Lummis stated that under the current system, crypto miners and stakers face double taxation — once when they receive block rewards and again when those assets are sold.
The proposed amendment seeks to exempt crypto transactions under $300 from taxation, with a $5,000 annual cap. It would also defer taxation on crypto earned from mining, staking, and airdrops until the assets are sold, providing clarity for users concerned about accidental tax violations. Lummis argues that these changes would “ensure Americans can use digital assets without fear of tax violations.”
Senate Rejects Crypto Ban for Officials
Earlier in the session, the Senate rejected a Democrat-backed amendment that would have banned government officials and their families from owning or promoting cryptocurrencies and other digital assets. Senators Jeff Merkley, Elizabeth Warren, and Jack Reed proposed this amendment to strengthen ethics rules, extending the restrictions to spouses and children of officials and even to former special government employees for one year after leaving their roles.
Senator Lummis opposed the measure, warning that while ethical concerns are valid, imposing such restrictions could “inflict serious harm on American innovation and competitiveness.”
Ongoing Discussions and Crypto Legislation Reform
Meanwhile, discussions around the bill continue. Businessman Elon Musk reignited his feud with Trump, promising on social media to create a new “America Party” if the spending package is passed. He previously criticized the bill as a “disgusting abomination” that could add $3.3 trillion to the national debt over the next decade.
The Senate discussions reflect an active attention towards cryptocurrency regulation, with proposals for tax changes and ethical norms that could impact the future of digital assets in the US.
