Senator Lummis Proposes Tax Waiver for Small Crypto Transactions in Budget Bill
U.S. Senator Cynthia Lummis is proposing a crypto tax amendment to the budget bill supporting President Trump's agenda. Key points of the proposal include:
- Waiving taxes on small crypto transactions below $300, capped at $5,000 annually.
- Addressing taxation issues related to staking, digital asset mining, lending, wash sales, and charitable contributions.
- Changing the tax treatment of staking and block rewards to only tax when sold, rather than upon receipt.
- Applying similar tax rules for assets gained from airdrops and forks.
- Potentially closing the wash-trading loophole that allows tax-loss harvesting strategies.
The amendment is part of an ongoing Senate process known as "vote-a-rama." If approved, the House would need to vote again on the revised spending bill, which could add over $3 trillion to the U.S. budget deficit.