Senator Lummis Proposes Crypto Tax Overhaul to Level Playing Field

Senator Cynthia Lummis has introduced legislation aimed at reforming what she calls discriminatory tax practices against digital assets. The proposed bill seeks to align crypto taxation with traditional financial instruments, addressing long-standing grievances within the industry.

A key provision establishes a $300 de minimis exemption for small transactions under $5,000 annually, eliminating capital gains reporting for routine purchases. The legislation also tackles double taxation by taxing staking and mining rewards only upon sale rather than receipt.

The comprehensive reforms extend to lending, charitable contributions, and wash sales, mirroring existing stock market regulations. These changes could significantly reduce compliance burdens and accelerate mainstream crypto adoption.