Senate Seeks Crypto Tax Relief in Trump Budget Bill

Senator Cynthia Lummis is spearheading a last-minute push to include a significant crypto tax amendment in President Donald Trump’s massive budget reconciliation bill, known as the "One Big Beautiful Bill." The amendment aims to provide long-sought tax relief for cryptocurrency users by introducing a de minimis exemption that would waive capital gains taxes on small crypto transactions under $300, with an annual cap of $5,000, simplifying tax compliance for everyday crypto payments. Additionally, it seeks to eliminate the double taxation on staking and mining rewards by taxing these rewards only at the point of sale rather than both upon receipt and sale, aligning taxation with actual income realization. Industry advocates and crypto policy groups argue that these changes would reduce burdensome tax complexities, promote wider crypto adoption, and help maintain U.S. leadership in blockchain innovation. The amendment also addresses other tax issues related to crypto lending, wash sales, and charitable contributions, though its inclusion in the final bill remains uncertain amid ongoing Senate negotiations. Supporters like Michael Saylor emphasize that reforming tax policy to end unfair burdens on Bitcoin miners is critical to sustaining and enhancing the U.S. position as a global leader in the crypto space.