Senator Lummis Introduces Crypto Tax Bill To US Legislature
US Senator Cynthia Lummis introduced a draft bill to reform the tax code, proposing exemptions for certain digital asset transactions. The bill includes a de minimis exemption for transactions and capital gains of $300 or less, with a $5,000 annual cap. It aims to exempt crypto lending agreements and charitable contributions from taxation and defers taxes on mining and staking rewards until assets are sold. Lummis emphasized the need for updated tax policies to support innovation in the digital economy. The legislation follows failed attempts to include crypto amendments in a budget package. The taxation of digital assets remains contentious, with frustrations over unclear policies affecting investors and users. Lawmakers are also considering amendments to exempt decentralized finance (DeFi) developers from being classified as money transmitters, potentially easing tax reporting burdens for DeFi protocols.
