Senator Lummis proposes fresh legislation
Senator Cynthia Lummis, affectionately known as "Bitcoin Cindy," has introduced a new bill aimed at revolutionising the taxation of cryptocurrencies in the United States. The bill, if passed, will make small crypto transactions tax-free and abolish double taxation on profits for blockchain validation.
The bill is a standalone comprehensive legislative package, separate from the "Big Beautiful Bill." It seeks to ensure Americans can participate in the digital economy without accidentally breaking the tax law. The bill recognises that it is not practical to track every small transaction with digital assets, such as buying coffee with Bitcoin.
The exemption for tax-exempt transactions will increase with the inflation rate starting from 2026. The threshold for tax-exempt transactions is set at $300 per transaction, with an annual total exemption of $5,000. This move is designed to promote the use of cryptocurrencies as a means of payment by eliminating the need to track small transactions.
Tristan, the editor-in-chief at Blocktrainer.de, has been actively involved with Bitcoin since 2020. Before his involvement with Bitcoin, Tristan was interested in libertarian economic theory. He has a background in economics and journalism, making him a valuable voice in the cryptocurrency community.
The bill also aims to provide tax relief for the U.S. mining industry, which is currently taxed upon receiving and selling coins. It also advocates for looser rules on crypto donations to non-profit organizations.
According to Eleanor Terrett's sources, the White House is backing Senator Lummis' ideas. However, it remains to be seen whether the bill will gain a majority in Congress. Senator Lummis is supported by organisations such as the Chamber of Digital Commerce, Coin Center, and various blockchain advocacy groups in her efforts to reform the tax system for Bitcoin and cryptocurrencies.
Senator Lummis' bill is not the first time she has shown her support for cryptocurrencies. Previously, she introduced a bill to buy Bitcoin for the U.S. Treasury's reserve. The bill was initially attempted to be included in the "Big Beautiful Bill," but did not make it into the version that passed the Senate.
In conclusion, Senator Lummis' bill, if passed, could significantly change the tax laws to support the digital economy and not burden users of digital assets. It could make it easier for Americans to participate in the digital economy without the fear of accidentally breaking the tax law. Only time will tell if this bill will become a reality.
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