Senator Lummis Introduces Bill Removing Bitcoin Capital Gains Tax Under $300, Ending Double Taxation on Miners and Stakers

Senator Cynthia Lummis has introduced a comprehensive bill aimed at reforming the taxation of Bitcoin and other cryptocurrencies in the United States. The legislation proposes to remove capital gains taxes on Bitcoin payments under $300, effectively exempting small personal crypto transactions from taxation. The bill also seeks to end the double taxation currently faced by Bitcoin miners and stakers, who are taxed both when they receive block rewards and when they sell their assets. Additionally, the proposal aims to align the tax treatment of digital assets with that of traditional financial instruments, including fairer treatment for lending and donations involving cryptocurrencies.

Senator Lummis emphasized the need to stop what she described as unfair tax treatment to ensure that America remains a global leader in Bitcoin and crypto innovation. The bill follows ongoing debates about crypto tax policy, with investor Bill Miller IV publicly stating that taxing Bitcoin "doesn’t make a ton of sense" given its unique monetary characteristics. These developments come amid wider discussions on tax reform in Washington, where some voices argue for broader corporate and capital gains tax reductions.