Senator Lummis Proposes Crypto Tax Reform to Eliminate Double Taxation

Wyoming Senator Cynthia Lummis has introduced a draft bill aimed at ending double taxation and providing clarity for cryptocurrency transactions. The legislation includes a $300 exemption threshold for small crypto transactions and capital gains, with an annual cap of $5,000. "This ensures Americans can participate in the digital economy without inadvertent tax violations," Lummis stated.

The bill, estimated to generate $600 million in net revenue from 2025-2034, seeks to align digital asset taxation with securities treatment. Lummis emphasized the need for the U.S. to modernize its tax code to maintain competitiveness in the evolving digital landscape. "We cannot allow archaic policies to stifle innovation," she added.

This standalone proposal represents Lummis's latest push for pro-crypto legislation after recent spending bills failed to address digital asset markets. The draft includes provisions allowing digital asset traders to elect mark-to-market accounting methods.