Senator Lummis Introduces New Legislation
Senator Cynthia Lummis, the Senator from Wyoming, has introduced a new bill aimed at making small crypto transactions tax-free. The bill, if passed, would bring significant changes to the tax law, supporting the digital economy and ensuring Americans can participate without the fear of accidental tax law violations.
The bill is a standalone comprehensive legislative package, separate from the "Big Beautiful Bill." It seeks to provide tax clarity on lending digital assets and other common transactions. One of the key provisions of the bill is the exemption for small crypto transactions, currently set at 300 USD per transaction, and the annual total exemption of 5,000 USD. From 2026 onwards, these exemptions will increase with the inflation rate.
The threshold for recording small transactions represents a balance between compliance and practical usability. The bill also aims to abolish double taxation on profits for blockchain validation and provide tax relief for the U.S. mining industry, which has been taxed both when they receive coins and when they sell them.
Senator Lummis' bill has garnered support from specific US politicians, including Senator Pat Toomey and Representative Darren Soto. According to journalist Eleanor Terrett's sources, the White House is also backing Senator Lummis' ideas.
The bill advocates for looser rules on crypto donations to non-profit organisations. It also seeks to promote the use of cryptocurrencies as a means of payment by eliminating the need to record small transactions. However, it remains to be seen whether Senator Lummis' bill will gain a majority in Congress.
Tristan, the editor-in-chief at Blocktrainer.de, a trained economist with journalistic experience outside the Bitcoin space, has been actively involved with Bitcoin since 2020. He has been a strong advocate for the digital economy and believes this bill could be a significant step forward in its development.
Senator Lummis, who has also introduced a bill to buy Bitcoin, has been a vocal supporter of the digital economy. Her bill is intended to maintain the competitive advantage of the United States in the digital economy, ensuring its continued growth and innovation.
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