U.S. Senator Bill Cassidy (R-LA) has joined with Senator Cynthia Lummis (R-WY) to introduce legislation aimed at updating tax rules for cryptocurrency. The bill is designed to address current challenges in digital asset taxation, aiming to make the tax code more compatible with modern economic activity.
“A twenty-first-century economy requires twenty-first-century tax policy,” said Dr. Cassidy. “This policy ensures the tax code works with you, not your great-great-grandfather. Now, whether you are using crypto to invest or just to buy your morning coffee, you can do it without worrying about a surprise tax bill.”
Senator Lummis added, “In order to maintain our competitive edge, we must change our tax code to embrace our digital economy, not burden digital asset users. 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. 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.”
The proposed legislation includes several measures: a $300 de minimis exemption for small purchases made with cryptocurrency; an end to double taxation for miners and stakers; provisions that bring digital asset lending and other transactions in line with existing financial asset regulations; updated rules on wash sales and mark-to-market treatment; and allowing charitable contributions of digital assets to be deducted at market value. According to estimates from the Congressional Joint Committee on Taxation, these changes could generate around $600 million in net revenue between 2025 and 2034.
