US Senator Cynthia Lummis has put forward a draft bill to reform the digital asset taxation regime in the United States. The draft bill comes after recent budget talks did not touch upon digital assets. Which left the crypto sector with uncertainly hanging in the balance.
At the center of the legislation is a de minimis exemption. That would exempt crypto transactions of capital gains of $300 or less from tax, up to a $5,000 per year limit. The modification could significantly reduce the tax burden for common users. Which making small transactions or purchases with digital currency.
The Wyoming senator, who has been a crypto supportive voice. That also seeks to exempt crypto lending agreements as well as charitable donations made in digital assets from tax.
In addition, the bill suggests taxing mining and staking rewards only when the assets are sold. It’s an initiative that has been welcomed by miners and validators who have hitherto been taxed at the point of receipt.
Senator Lummis said, “This landmark legislation is paid for in full, cuts bureaucratic red tape, and creates common-sense regulations that mirror how digital technologies operate in the real world.”
She added that the bill aims to enable Americans to engage. In the expanding digital economy without inadvertently committing tax offenses.
Taxation of digital assets is still disappointing crypto investors in the U.S., with the current policies. Which are frequently causing double taxation and ambiguity. Legislators are also struggling to figure out how to regulate decentralized finance (DeFi). And especially protocols that have no centralized authority.
With this independent bill, Lummis makes good on her commitment to the crypto world and sets the U.S. up for innovation-friendly legislation. And an important move as lawmakers hurry to complete crypto-related measures in the next spending bill.
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Source: https://thenewscrypto.com/us-senator-cynthia-lummis-introduces-pro-crypto-tax-reform-bill/