Cynthia Lummis Proposes Major Bitcoin Tax Reform Bill to Boost U.S. Crypto Competitiveness

U.S. Senator Cynthia Lummis has introduced a pivotal digital asset tax reform bill aimed at fostering a balanced regulatory framework for the cryptocurrency sector. The legislation seeks to modernize tax codes to better align with the evolving digital economy, ensuring that crypto users are not disproportionately burdened. Key provisions include a $300 exemption threshold for minor transactions and the removal of double taxation on mining and staking activities, promoting fairness and operational clarity.

The bill also strives to harmonize tax treatment between digital assets and traditional financial instruments, addressing areas such as lending, wash sales, and mark-to-market rules. Additionally, it proposes eliminating the requirement for valuation reports on charitable donations of digital assets, simplifying compliance for donors. According to the Joint Committee on Taxation, this reform is projected to generate approximately $600 million in net revenue over the 2025-2034 period, reflecting a balanced approach to innovation and fiscal responsibility.

Senator Lummis emphasized the importance of adapting tax legislation to maintain the United States’ competitive edge in the global digital economy. The bill is currently open for public commentary, with ambitions to expedite its passage and presidential approval, signaling a significant step forward in crypto regulatory policy.