Senator Lummis Introduces Digital Asset Tax Legislation
Briefly

Senator Cynthia Lummis has introduced legislation aimed at modernizing the tax code for digital assets. The bill proposes a de minimis exemption for small gains and losses, exempting transactions under $300 and a $5,000 annual limit. It clarifies that crypto lending is not taxed as a sale and implements the 30-day wash sale rule to promote tax fairness. Additionally, it offers digital asset dealers mark-to-market treatment for accurate income recognition and defers taxation on mining and staking until assets are sold, easing the tax burden.
"In order to maintain our competitive edge, we must change our tax code to embrace our digital economy, not burden digital asset users," said Lummis.
"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 proposal introduces a de minimis exemption that would exclude small digital asset gains or losses from taxation, with a limit of $300 per transaction and $5,000 annually.
It also defers taxation on mining and staking until the assets are sold, reducing the burden of being taxed on unrealized income.
Read at Bitcoin Magazine
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