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U.S. Senator Cynthia Lummis has introduced a new bill that proposes a sweeping reform of how cryptocurrency is taxed in the United States.
Author: Sahil Thakur
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.
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.
The proposed legislation includes:
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She added that existing tax laws are outdated and risk stifling innovation.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.
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.
| 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. |
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