U.S. Senator Cynthia Lummis proposed a comprehensive encryption tax reform bill, recommending tax exemption for microtransactions and eliminating double taxation on stakes.

On July 3, U.S. Senator Cynthia Lummis introduced a comprehensive digital asset tax bill today, aiming to achieve several key outcomes for the encryption industry and committed to creating a fair competitive environment for digital asset users across the United States. Cynthia Lummis stated: "To maintain America’s competitive edge, we must reform tax laws to adapt to the digital economy, rather than placing burdens on digital asset users. We welcome public comments on this legislation, in hopes of getting it to the President’s desk soon." According to estimates from the Congressional Joint Committee on Taxation, the bill is expected to net approximately $600 million in revenue during the fiscal years 2025 to 2034. The bill proposes reforms addressing multiple digital asset tax issues, including: · Tax exemption for microtransactions: establishing a minimum threshold rule of $300 · Eliminating double taxation for Miners and stakers · Tax parity for digital assets and TradFi assets (such as lending, wash sales, taxation based on market capitalization, etc.) · Charitable donations without valuation reports.