Senator Cynthia Lummis Unveils Bill to Ease Crypto Taxes and Boost Clarity for Investors

The U.S. Senator Cynthia Lummis has introduced a new draft bill to update tax rules and make it easier for Americans to use digital assets like crypto.

Lummis Pushes New Bill to Simplify Crypto Taxes

This comes after the exclusion of crypto amendments from the recent budget deal. The bill suggests a tax exemption of small crypto transactions and profits of $300 or less, with a yearly limit of $5,000.

It also proposes tax breaks for crypto lending and crypto donations to charity, while taxes on mining and staking rewards to only apply when the assets are sold.

“This bill cuts red tape and creates simple, clear rules that match how digital assets work today,” Lummis said. “We can’t let outdated tax laws block innovation. My bill lets people take part in the digital economy without worrying about breaking tax rules by accident.”

In addition, with crypto left out of the latest budget package, this bill is now Senator Lummis’ main chance to deliver on her promise to support the crypto community.

Meanwhile, investors in the U.S. crypto industry showed frustration with the country’s outdated and unclear tax rules. A major issue is taxation on DeFi platforms, especially since no one controls the funds on these platforms, leaving investors and users confused.

Congress Proposes DeFi Tax Relief

To address this, U.S. lawmakers on the House Financial Services Committee introduced a proposal in June to amend the Digital Asset Market Clarity Act of 2025. The proposal would prevent DeFi developers from being classified as money transmitters.

If approved, DeFi platforms would be exempt from the same tax reporting requirements that apply to centralized crypto exchanges and other traditional businesses.

Lawmakers are now racing to include these changes in the final version of the spending bill before it goes to President Donald Trump for approval.