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Homepage > News > Business > Cynthia Lummis digital asset tax bill seeks capital gain reforms United States Senator Cynthia Lummis (R-WY) has introduced “comprehensive digital asset tax legislation” that would provide, amongst other measures, exemptions on gains from digital asset transactions, an end to the so-called “double taxation” of digital asset miners and stakers, and greater parity with how other asset types are treated. On July 3, Senator Lummis—a prominent supporter of the digital asset space and chair of the Senate digital assets subcommittee—published a bill to amend the Internal Revenue Code of 1986 to reform the treatment of digital assets, which the Wyoming Republican claimed would “generate approximately $600 million in net revenue during the 2025-2034 budget window.” The legislation proposes several tax reforms to benefit the digital asset space, whilst bringing the asset class more in line with the treatment of other securities and commodities in certain areas. “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.” She added that U.S. lawmakers “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.” Tax exception for small transactions First on the list of changes would be a “de minimis exclusion” from taxation for digital asset gains or losses of $300 or less, with a $5,000 yearly total cap—unless “the sale or exchange is for cash or cash equivalents” (including payment stablecoins), property used in active trade or business, or property held for income production. “This provision recognizes the impracticality of tracking every small digital asset transaction, such as buying coffee with Bitcoin, which creates enormous…

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Filed under: News - @ July 8, 2025 3:26 pm