Senator Lummis Proposes Crypto Tax Relief in Budget Bill

U.S. Senator Cynthia Lummis is pushing to include a crypto tax amendment in the federal budget bill, aiming to exempt small-scale transactions under $300 from capital gains reporting. The measure would cap annual tax-free transactions at $5,000, potentially lowering barriers for retail crypto adoption.

The proposal addresses longstanding industry complaints about double taxation of staking rewards and mined assets. "This corrects a fundamental flaw in how blockchain rewards are taxed," said the Digital Chamber of Commerce. The amendment also clarifies tax treatment for crypto lending and wash sales.

While the provision hasn't yet reached a vote, its inclusion in major legislation signals growing political recognition of cryptocurrency's mainstream role. The move could particularly benefit proof-of-stake networks like ethereum (ETH) and Polkadot (DOT), where staking generates regular taxable events.