US Senator Lummis Proposes Capital Gains Tax Exemption for Crypto Transactions Under $300
Under the current US tax system, purchases made with digital assets such as Bitcoin are treated as disposals of property. Users may therefore have to calculate and report capital gains even when buying something as small as a cup of coffee. Senator Cynthia Lummis has called for a tax exemption threshold for small transactions to ease the tax and record-keeping burden of everyday payments and allow cryptocurrency to function more like the US dollar as a medium of exchange.
Lummis introduced S.2207 on June 30, 2025, and referred it to the US Senate Finance Committee. The bill would exempt transactions when both the transaction value and the gain are no more than $300, subject to an annual cap of $5,000, with inflation adjustments beginning in 2026. She renewed the push in March 2026, seeking to add the provision to the digital asset market structure bill under Senate consideration.
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The history behind this eventHouse Panel Unveils Crypto Tax Bill Ahead of Markup
The United States generally taxes digital assets under property rules and IRS guidance, meaning even small on-chain fees can create recordkeeping obligations, while the timing of income recognition for mining and staking rewards remains contentious. The House Ways and Means Committee’s package matters because it would introduce crypto-specific rules, ease routine compliance and extend traditional anti-abuse provisions, including wash-sale rules, to digital assets.
Committee Chairman Jason Smith released the 114-page H.R. 10357, the Digital Asset Tax Certainty Act, on September 14, ahead of a markup scheduled for 10 a.m. ET on September 16. The bill would exempt gains or losses on digital assets used to pay network and transaction fees of no more than $10, excluding taxpayers with more than 5,000 transfers in the prior year. It classifies mining and staking income as ordinary income but omits an earlier option to defer tax on newly minted rewards until sale.
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