U.S. Senator Lummis Proposes Adding Small Crypto Transaction Tax Exemption to "Build Back Better" Bill

On July 1st, as per the report from CoinDesk, US Senator Cynthia Lummis is making a stealthy attempt to incorporate a crucial cryptocurrency tax provision into the former President Donald Trump's large-scale budget reconciliation bill, which is intended to reduce the tax burden on basic cryptocurrency activities. Lummis proposed on Monday to include relevant provisions in Congress's "Big Beautiful Bill". These provisions include an exemption for small cryptocurrency transactions (below $300) from taxes. Industry insiders state that this move would simplify the current practice of taxing both ends of core cryptocurrency activities such as staking and digital asset mining. The proposal also suggests setting the annual total limit for small transactions at $5,000, which would significantly reduce the burden of calculating capital gains taxes for those who only engage in a small amount of digital asset trading. Industry insiders believe that this will alleviate the concerns of many potential users regarding trying cryptocurrency. The amendment promoted by Lummis has not yet been voted on and also involves tax issues related to cryptocurrency lending, wash sales, and charitable donations.