- Small crypto transactions under $300 may become tax-free
- Staking, mining, and airdrops taxed only at sale
- Aims to simplify crypto taxes and boost innovation
Reforming Crypto Tax Rules
U.S. Senator Cynthia Lummis has proposed a groundbreaking crypto tax amendment as part of the larger “One Big Beautiful Bill.” This amendment is designed to modernize and simplify the current tax framework around digital assets, making it more practical for everyday users and fairer for those earning through blockchain participation.
One of the headline features is a de minimis exemption for cryptocurrency transactions. Under this provision, transactions under $300 would be exempt from capital gains tax, up to a $5,000 annual limit. This would eliminate the burden of tracking small purchases—like coffee or groceries made with crypto—which currently require detailed gain/loss calculations.
Preventing Double Taxation
Another critical part of the amendment addresses how income from staking, mining, airdrops, and network forks is taxed. Instead of taxing these activities when the assets are received, the new rule would apply taxes only when the assets are sold or exchanged. This shift ensures that users aren’t taxed twice—once at the time of acquisition and again at disposal.
This change aligns the tax treatment of crypto income with that of other forms of property, making it more predictable and equitable.
What It Means for Crypto Users
If this crypto tax amendment is passed, it could have significant implications:
- Everyday users could use crypto more freely without tax anxiety over micro-transactions.
- Stakers, miners, and airdrop recipients would enjoy clearer and fairer tax treatment.
- The broader crypto market could benefit from improved regulatory clarity and reduced compliance burdens.
The amendment is currently under Senate review and has drawn attention as a potential game-changer for U.S. crypto policy. It reflects growing efforts among lawmakers to bring practical regulations to an industry that’s rapidly integrating with the mainstream financial system.
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