Senator Cynthia Lummis of Wyoming has unveiled a new bill aimed at updating the U.S. tax framework in light of the exclusion of cryptocurrency provisions from the latest budget.
New Crypto Tax Bill
Senator Lummis has introduced a proposal that seeks to clarify the taxation of digital assets, following the failure to include cryptocurrency provisions in the federal budget negotiations.
Tax Relief for Small Transactions
The bill includes tax relief for small transactions, such as a de minimis capital gains exemption of $300 per transaction, with an annual limit of $5,000, which would allow daily purchases without triggering tax reporting requirements.
Criticism of IRS and Management Failures
A recent report from the U.S. Treasury Inspector General has identified significant shortcomings in how the IRS handles seized crypto assets, highlighting the need for urgent reforms in asset management.
Senator Lummis’s bill represents a significant step forward for cryptocurrency taxation in the U.S., although it will face challenges in the legislative process.
