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Senator Lummis Introduces Digital Asset Tax Legislation

Bitcoin Magazine

Senator Lummis Introduces Digital Asset Tax Legislation

Today, U.S. Senator Cynthia Lummis (R-WY) has introduced a comprehensive digital asset tax legislation that could significantly boost the use of Bitcoin and other cryptocurrencies by cutting the bureaucratic red tape, modernising outdated tax rules, and supporting Bitcoin and crypto innovation.

“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. We cannot allow our archaic tax policies to stifle American innovation, and my legislation ensures Americans can participate in the digital economy without inadvertent tax violations.”

The proposal introduces a de minimis exemption that would exclude small digital asset gains or losses from taxation, with a limit of $300 per transaction and $5,000 annually, and an inflation adjustment beginning in 2026. 

The bill ensures Bitcoin and other crypto lending is not taxed as a sale, aligning it with traditional securities lending and improving capital efficiency. It also applies the 30-day wash sale rule to digital assets, closing a loophole and promoting tax fairness across asset classes.

The bill allows digital asset dealers and traders to elect mark-to-market tax treatment, aligning Bitcoin and other crypto with existing rules for securities and commodities. This allows a more accurate income recognition based on fair market value, eliminating arbitrary discrimination based on asset type.

It also defers taxation on mining and staking until the assets are sold, reducing the burden of being taxed on unrealized income. In addition, the bill removes appraisal requirements for charitable donations of actively traded digital assets, making it easier to contribute to Bitcoin and crypto nonprofits and treating it like publicly traded stock.

“The legislation is estimated by the Congressional Joint Committee on Taxation to generate approximately $600 million in net revenue during the 2025-2034 budget window,” stated the siaran pers.

Senator Lummis emphasized the importance of public input in shaping a fair and forward looking approach to Bitcoin and the broader digital asset economy. “I welcome public comments on this legislation as we seek to get this package to the President’s desk,” she said.

This post Senator Lummis Introduces Digital Asset Tax Legislation first appeared on Bitcoin Magazine and is written by Oscar Zarraga Perez.


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