Senator Lummis Unveils Standalone Crypto Tax Bill After Failed OBBB Inclusion

U.S. Senator Cynthia Lummis has introduced a new bill that proposes a sweeping reform of how cryptocurrency is taxed in the United States. The legislation, made public on July 3, comes just a day after her crypto tax amendment failed to make it into President Donald Trump’s wide-ranging One Big Beautiful Bill Act (OBBB).

The OBBB recently passed the Senate and is currently awaiting House approval before heading to the president’s desk.

A Fresh Attempt at Digital Asset Tax Reform

Lummis, who chairs the Senate Banking Committee’s digital assets subcommittee, reintroduced the proposal as standalone legislation. The bill seeks to amend the Internal Revenue Code of 1986, aligning it with the needs of a digital economy.

Among its key features is a de minimis exemption for small crypto transactions under $300, shielding day-to-day users from unnecessary tax complexity. It also proposes the elimination of double taxation for crypto miners and stakers—an issue that has long frustrated digital asset participants.

Key Provisions

The proposed legislation includes:

• A $300 tax exemption threshold for small crypto transactions.
• No double taxation for mining and staking rewards.
• Tax parity for digital assets with traditional financial instruments.
• Expansion of securities lending rules to include crypto.
• Clear guidelines to ensure that most digital asset loans are not taxable events.

Lummis said the goal is to modernize U.S. tax law to reflect the way digital assets function in practice.

“This groundbreaking legislation is fully paid-for, cuts through bureaucratic red tape, and establishes common-sense rules,” she said.

She added that existing tax laws are outdated and risk stifling innovation. The bill is open to public comment, signaling a willingness to engage stakeholders before the next steps in Congress.

Part of a Larger Regulatory Push

Lummis’ bill joins several other active proposals in Congress that aim to define the regulatory future of digital assets in the U.S. These include the CLARITY Act and the GENIUS Act, which focus on market structure and securities classification.

Following Trump’s return to office, Lummis also introduced the Bitcoin Act, aimed at creating a strategic Bitcoin reserve for the United States.

Together, these efforts suggest that U.S. lawmakers are preparing to take a more structured and long-term approach to crypto policy—one that could finally bridge the regulatory gap between digital and traditional finance.

History of Senator Lummis With Crypto

Year	Event	Details
2013	First Bitcoin Purchase	Purchased BTC on advice of son-in-law; early adopter in U.S. politics.
2020	Elected to U.S. Senate	Becomes one of crypto’s most outspoken supporters in Congress.
2021	Financial Innovation Caucus	Co-founded to educate lawmakers on blockchain and crypto assets.
2021	Broker Amendment to Infrastructure Bill	Advocated to narrow IRS definitions to exclude miners, devs, and validators.
2022	Responsible Financial Innovation Act	Comprehensive bipartisan legislation with Sen. Gillibrand to regulate crypto markets.
2022	Crypto Blind Trust	Moved personal holdings into blind trust after ethics scrutiny.
2023	Illicit Finance Amendment	Urged DOJ to investigate Tether/Binance after Hamas terror funding reports.
2024	BITCOIN Act	Proposed that the U.S. acquire 1 million BTC as a strategic reserve.
2025	Subcommittee Chair	Named head of Senate Banking Subcommittee on Digital Assets; re-introduces BITCOIN Act.