U.S. Senator Cynthia Lummis shared a new draft bill on Thursday to change tax rules and make some crypto transactions tax-free. This comes after crypto tax changes were not added to the latest budget plan.
The bill suggests that small crypto transactions, where the gain is $300 or less, should not be taxed. But there would be a limit of $5,000 in these tax-free gains per year.
The Senator from Wyoming also wants crypto loans and crypto given to charities to be tax-free. Additionally, she proposes that people shouldn’t have to pay taxes on crypto mining or staking rewards until they actually sell the crypto they earn.
“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. We cannot allow our archaic tax policies to stifle American innovation. My legislation ensures Americans can participate in the digital economy without inadvertent tax violations.”
Cynthia Lummis
This new draft bill is now the best chance for the Wyoming Senator to keep her promise to the crypto community. It’s her way to try to pass pro-crypto laws after the spending bill was approved without any crypto rules.
Digital asset taxes are causing frustration in the U.S. crypto industry, especially over how DeFi protocols are treated. Lawmakers recently proposed exempting DeFi developers from being seen as money transmitters, which would also free them from strict tax reporting rules. They’re rushing to add these crypto rules to the final spending bill before it reaches U.S. President Donald Trump.
