Today, the senator of the United States Cynthia Lummis (R-Wy) has introduced a complete digital tax activity legislation that could significantly increase the use of bitcoins and other cryptocurrencies by cutting the bureaucratic bureaucracy, modernizing obsolete tax rules and supporting Bitcoin and crypt innovation.
“In order to maintain our competitive advantage, we must change our tax code to embrace our digital economy, not a load of users of digital resources,” said Lummis. “This revolutionary legislation is fully paid, cuts through the bureaucratic bureaucracy and establishes rules of common sense that reflect the way in which digital technologies work in the real world. We cannot allow our archaic tax policies to suffocate American innovation and my legislation ensures that Americans can participate in the digital economy without violations of invented taxes.”
The proposal introduces an exemption de minimis that would exclude small earnings or losses of digital activities from taxation, with a limit of $ 300 for transaction and $ 5,000 per year and an adjustment of the inflation that begins in 2026.
The bill guarantees that Bitcoin and other cryptographic loans are not taxed as a sale, aligning it with traditional loans in securities and improving the efficiency of capital. It also applies the Wash sales rule to 30 days to digital activities, closing a escapade and promoting tax equity between the activities of activity.
The bill allows for digital activities and operators to elect Mark-to-Market’s tax treatment, aligning Bitcoin and other cryptocurrencies with the existing rules for securities and goods. This allows a more accurate income recognition based on the fair market value, eliminating arbitrary discrimination based on the type of activity.
Also defends the taxation on mining and the picketing until the activities are sold, reducing the burden of being taxed with unrealized income. In addition, the bill removes the assessment requirements for charity donations of digital activities actively exchanged, making it easier to contribute to Bitcoin and organizational cryptocurrencies and treat them as a shares listed on the stock exchange.
“The legislation is estimated by the joint committee of the Congress for taxation to generate net revenues of approximately $ 600 million during the budget window 2025-2034,” said the press release.
Senator Lummis underlined the importance of the public in modeling a fair and forward -looking approach to Bitcoin and the widest economy of digital resources. “I welcome public comments on this legislation as we try to bring this package to the president’s desk,” he said.