Senator Cynthia Lummis Proposes Crypto Tax Relief for Small Transactions

U.S. Senator Cynthia Lummis is spearheading a legislative push to simplify crypto taxation in the United States.

Written by: Sophia Cruz • Tuesday, July 1, 2025 • 2 min read

• Last updated: Tuesday, July 1, 2025

Quick overview

Senator Cynthia Lummis is proposing an amendment to exempt small-scale crypto transactions from capital gains taxes, easing compliance for users.
The proposal aims to relieve users from reporting gains under $300 per transaction, up to $5,000 annually, making crypto use more accessible.
Lummis is also advocating for tax credits for Bitcoin miners using renewable energy, promoting sustainable growth in the mining industry.
The amendment has garnered support from lawmakers and industry leaders, potentially marking a significant step towards modernizing U.S. crypto regulations.

U.S. Senator Cynthia Lummis is spearheading a legislative push to simplify crypto taxation in the United States.

Her latest proposal, submitted as an amendment to a broader budget bill, aims to exempt small-scale crypto transactions from capital gains taxes. If passed, it would relieve users from reporting gains of under $300 per transaction, up to $5,000 annually. The measure is designed to make cryptocurrency use more accessible for everyday Americans while easing compliance burdens.

Today, even small crypto trades are considered taxable events, forcing users to track and report each transaction. This complexity discourages new users and places a heavy administrative load on both individuals and financial brokers. By introducing a clear exemption, Lummis hopes to normalize low-volume crypto use and treat digital assets more like cash equivalents in daily life.

In addition to the user-focused reform, Senator Lummis is championing changes that would benefit Bitcoin miners. Her proposal includes a tax credit incentive for mining operations that use renewable energy sources. The goal is to encourage sustainable growth in the domestic mining industry while supporting energy efficiency. This could offer significant cost relief to mining firms and incentivize them to stay onshore rather than relocate to countries with less regulation.

The combined reforms reflect Lummis’ broader strategy to position the U.S. as a leader in crypto innovation. By addressing both retail user needs and industrial-level operations, the bill aims to create a balanced, future-ready regulatory framework.

The proposed amendment has drawn support from several lawmakers and industry leaders who view it as a practical update to outdated tax codes. For brokers and institutions, it could mean fewer reportable events, reduced compliance headaches, and a more attractive environment for clients entering the digital asset space.

As the budget bill progresses through Congress, attention will focus on whether these crypto-friendly provisions make it to the final version. If they do, it could mark a major win for both crypto adoption and industry stability in the U.S.

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ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.