Senator Cynthia Lummis Drops Game-Changing Crypto Tax Bill—What You Need to Know

Crypto just got a potential lifeline—or a regulatory landmine. Senator Cynthia Lummis (R-WY) just unveiled a sweeping tax bill targeting digital assets, and the market’s already buzzing. Here’s the breakdown.

The Lummis Factor: A Friend or Foe to Crypto?

Wyoming’s crypto-crusader is back at it—this time with a tax proposal that could reshape how Uncle Sam treats your Bitcoin stash. No vague promises here—just hard policy moves.

What’s in the Bill?

Details are still emerging, but insiders hint at clearer capital gains rules, mining incentives, and—of course—the obligatory nod to ‘national security concerns.’ Because nothing screams innovation like tying it to a Pentagon budget.

The Bigger Picture: A Test for Crypto’s Political Clout

Lummis isn’t just tweaking IRS forms—she’s forcing a conversation. Will this bill grease the wheels for institutional adoption? Or become another bureaucratic speed bump? Either way, D.C. just got more interesting for hodlers.

Bottom Line:

Another day, another crypto bill. But with Lummis leading the charge, this one might actually matter—unless, of course, it gets buried in committee like the last three ‘groundbreaking’ proposals. Stay tuned.

A digital asset tax legislation

The lawmaker has now introduced the proposal as standalone legislation. It seeks to amend the Internal Revenue Code of 1986 to reform how the U.S. tax code treats digital assets.

Key highlights include a threshold, or de minimis rule, of $300 on crypto transactions, elimination of double taxation for crypto miners and stakers and tax parity – treating of crypto like other financial assets.

The bill also proposes expanding securities lending rules to include digital assets, clarifying that digital asset lending is generally not a taxable event.

“In order to maintain our competitive edge, we must change our tax code to embrace our digital economy, not burden digital asset users,” said Lummis. “This groundbreaking legislation is fully paid-for, cuts through the bureaucratic red tape and establishes common-sense rules that reflect how digital technologies function in the real world.”

According to Lummis, it’s time America does not allow its “archaic tax policies” to stifle innovation.

“My legislation ensures Americans can participate in the digital economy without inadvertent tax violations,” she added.

In a statemen, Lummis said she welcomes public comments on the bill.

Lummis’ crypto tax bill joins other notable digital asset regulation bills in the U.S., including crypto market structure and stablecoin regulation. Both the CLARITY and GENIUS Act bills are matters currently on Congress’ calendar.

Following Trump’s election, Lummis introduced the Bitcoin Act, a bill that seeks to establish a BTC strategic reserve for the U.S.