Senator Lummis Proposes $300 Crypto Tax Exemption in Standalone Bill

* Lummis bill includes tax deferrals for crypto staking rewards. * Legislation seeks to modernize U.S. tax policies for digital assets. On July 3, 2025, Cointelegraph reported that U.S. Senator Cynthia Lummis introduced standalone legislation to overhaul the United States tax code for cryptocurrencies and other digital assets. This proposal follows the exclusion of crypto-related provisions from a recently passed congressional budget package. The bill seeks to modernize tax policies and foster innovation in the growing digital economy, directly addressing industry concerns about outdated and unclear regulations. The proposed legislation includes several notable measures. One provision creates a $300 de minimis exemption for capital gains on individual digital asset transactions, with an annual cap of $5,000. This measure aims to reduce tax burdens on small-scale cryptocurrency transactions and encourage their everyday use. Another significant provision defers tax obligations on rewards from crypto mining and staking activities until the related assets are sold, which offers industry participants improved tax planning options. The bill also proposes exemptions for crypto lending agreements and digital asset donations to charitable organizations. Senator Lummis highlighted the need for tax rules that align with the unique nature of digital technologies, asserting that these measures will reduce bureaucratic obstacles and enable broader participation in the digital economy. The legislation aims to mitigate accidental tax compliance issues and promote innovation. Frustration has been mounting within the cryptocurrency industry over the lack of clear tax guidelines, especially in decentralized finance (DeFi). To address these issues, lawmakers introduced an amendment to the Digital Asset Market Clarity Act of 2025 in June. This amendment includes provisions to exclude DeFi developers from classification as money-transmitting services, which would limit their tax reporting obligations. Meanwhile, amid these regulatory discussions, market data from CoinMarketCap on July 3 showed Bitcoin (BTC) trading at $31,452 as of 16:00 UTC, a 1.8% decrease over 24 hours. Ethereum (ETH) was priced at $1,999, representing a 1.2% decline over the same period. These figures reflect heightened market activity, underscoring the ongoing relevance of regulatory developments for the cryptocurrency sector.