Senator Lummis proposes to exempt small crypto transactions from taxes, ending double taxation for miners and stakers

Senator Cynthia Lummis is pushing for digital asset tax reform through new legislation projected to generate $600 million from 2025 to 2034 and streamline tax treatment for crypto holders, according to a Thursday news release.

The bill seeks to exempt crypto transactions under $300 from capital gains tax, which would help streamline everyday crypto payments. The $300 threshold applies to both transaction value and total gain, with a $5,000 yearly cap and inflation adjustments beginning in 2026.

Under the proposed measures, crypto earned through mining or staking will be taxed only once when it’s sold or exchanged, not when it’s first received.

Other key provisions include extending security lending rules to digital assets, implementing a 30-day wash sale rule for crypto transactions, and allowing dealers and traders to elect mark-to-market treatment.

Senator Lummis stated that an overhaul of the tax code that supports the growth of digital assets is key for the US to stay ahead in global innovation and finance.

“This groundbreaking legislation is fully paid-for, cuts through the bureaucratic red tape and establishes common-sense rules that reflect how digital technologies function in the real world,” the senator noted.

“We cannot allow our archaic tax policies to stifle American innovation, and my legislation ensures Americans can participate in the digital economy without inadvertent tax violations,” Lummis added, noting that she welcomes public comments on the legislation.

Lummis seeks to pass the bill through Congress and deliver it to President Trump for approval and enactment.