U.S. Senate Pursues Standalone Crypto Tax Relief Bill After Exclusion from Budget Package

Senator Cynthia Lummis has introduced legislation to alleviate tax burdens for cryptocurrency users, proposing a $300 de minimis threshold for capital gains reporting on small transactions. The bill aims to exempt routine crypto purchases from complex tax calculations, capping the annual exemption at $5,000.

The proposed reforms would eliminate double taxation on staking rewards, mining income, and airdrops—taxing only the final sale proceeds rather than initial receipt. It also addresses longstanding industry concerns around crypto lending, wash sale rules, and mark-to-market accounting for traders.

"Current tax policies risk stifling American innovation in the digital asset space," Lummis stated, framing the bill as necessary regulatory clarity for mainstream crypto adoption. The legislation faces uncertain prospects in a divided Senate, where competing priorities dominate the legislative calendar.