U.S. Senator Bill Cassidy (R-LA) has joined a legislative effort led by Senator Cynthia Lummis (R-WY) aimed at updating the tax code for digital assets such as cryptocurrency. The proposed legislation seeks to address existing challenges in how crypto is taxed, with the goal of making regulations fairer and more practical for users.
“A twenty-first-century economy requires twenty-first-century tax policy,” said Dr. Cassidy. “This policy ensures the tax code works with you, not your great-great-grandfather. Now, whether you are using crypto to invest or just to buy your morning coffee, you can do it without worrying about a surprise tax bill.”
Senator Lummis also emphasized the need for modern rules that reflect current technology and economic practices. “In order to maintain our competitive edge, we must change our tax code to embrace our digital economy, not burden digital asset users,” said Senator Lummis. “This groundbreaking legislation is fully paid-for, cuts through the bureaucratic red tape and establishes common-sense rules that reflect how digital technologies function in the real world. We cannot allow our archaic tax policies to stifle American innovation, and my legislation ensures Americans can participate in the digital economy without inadvertent tax violations.”
The measure proposes several key changes: it introduces a $300 de minimis rule allowing small purchases made with cryptocurrency without triggering taxes; eliminates double taxation on miners and stakers; brings parity between digital assets and other financial instruments regarding lending practices, wash sales, and mark-to-market treatment; and allows charitable contributions of digital assets to be deducted at market value. According to estimates from the Congressional Joint Committee on Taxation, these changes could result in approximately $600 million in net revenue between 2025 and 2034.
