Senator Cynthia Lummis proposed a tax exemption for small crypto transactions.

Senator Cynthia Lummis ( from Wyoming) has just introduced an independent bill aimed at reforming the tax policy on digital assets in America, amidst the context of cryptocurrency-related amendments being excluded from the newly passed budget bill.

The proposed bill suggests tax exemption for digital asset transactions and capital gains valued under 300 USD, with an annual tax exemption cap of 5,000 USD. Additionally, agreements for digital asset lending and charitable contributions in cryptocurrency will also be tax-exempt.

In particular, the bill allows for the deferral of tax obligations on rewards from coin mining and staking until the underlying assets are sold.

Cynthia LummisSenator Lummis emphasized:

"This is a groundbreaking step, simplifying the cumbersome administrative process and establishing practical rules that align with how digital technology operates in the real world. We cannot allow outdated tax policies to stifle innovation in America."

She affirmed that this legislation will help people participate in the digital economy without worrying about unintended tax violations.

This independent bill is now seen as the best opportunity for Senator Lummis to fulfill her commitment to support the cryptocurrency industry, after the U.S. Senate passed the spending bill without mentioning this sector.

Tax issues causing dissatisfaction for the cryptocurrency community in America

Currently, the unclear tax policy is causing significant difficulties for investors, businesses, and users in the cryptocurrency sector in America. In particular, the way taxes are applied to decentralized finance protocols (DeFi) – which are not subject to the control of any organization – is a highly controversial topic.

In June, lawmakers at the U.S. House Financial Services Committee proposed an amendment to the Digital Asset Market Clarification Act of 2025. Accordingly, DeFi protocol developers will not be classified as money services and will be exempt from reporting obligations like centralized exchanges.

The U.S. legislature is currently rushing to add provisions related to cryptocurrency to the final version of the spending bill before presenting it to President Donald Trump for approval.

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