U.S. Senator Cynthia Lummis Introduces Comprehensive Cryptocurrency Tax Reform Bill, Proposing Tax Exemption for Small Transactions and Elimination of Double Taxation on Staking

On July 3rd, U.S. Senator Cynthia Lummis introduced a comprehensive digital asset tax bill today. This has achieved several key victories for the crypto industry and is striving to create a level playing field for all American digital asset users. Cynthia Lummis stated, "To maintain America's competitive edge, we must reform the tax law to adapt to the digital economy instead of burdening digital asset users. Public input on this legislation is welcome as we aim to present it to the President's desk soon." According to the Joint Committee on Taxation, it is estimated that the bill will generate approximately $600 million in net revenue between fiscal years 2025 and 2034. The bill proposes reforms to various digital asset tax issues, including: · Exemption of small transactions from tax: Establish a $300 de minimis rule. · Elimination of double taxation for miners and stakers. · Tax parity between digital assets and traditional financial assets (such as lending, wash sales, mark-to-market taxation, etc.). · Charitable donations without the need for valuation reports.