Senator Lummis Proposes Crypto Tax Reform Bill with Key Benefits for Digital Asset Users

Senator Cynthia Lummis has introduced legislation to overhaul cryptocurrency taxation, aiming to remove barriers for everyday users and strengthen U.S. competitiveness in digital assets. The bill's centerpiece is a $300 de minimis exemption for crypto purchases—eliminating reporting requirements for small transactions and encouraging broader adoption.

The proposal tackles contentious industry pain points, including double taxation for miners and stakers. Current law treats mined or staked tokens as taxable income upon receipt, then again upon disposal. Lummis' framework WOULD tax these activities only at the point of sale, aligning with industry demands for fairer treatment.

Legislators seek to modernize tax code definitions to accommodate emerging asset types like NFTs and stablecoins. The bill also addresses impractical wash-sale rules that conflict with crypto markets' continuous trading nature—a recognition that legacy financial regulations require adaptation for blockchain economies.