Senator Lummis Submits New bills on Crypto Taxes

[IceLincoln]

I just came across this news today!
The senator who has been in forefront of advocating for bitcoin strategic reserve and better crypto policies.
She has once again introduced a new bill that should update the tax code on digital assets. This happened after the federal budget was passed without a single mention of cryptocurrencies.
Key Focuses of the document:
1. Exemption of Tax for Small Transactions: transactions below $300 will be tax free with a yearly maximum of $5000
2. Deferral of taxes of mining and staking until the moment of assets sale. This addresses the issue of double taxation.
3. Tax Exemptions for crypto loans and charitable contributions in digital assets.

https://coingape.com/lummis-bill-simplifies-crypto-tax-compliance/

She believes this will help promote innovation, reduce bureaucratic hurdles and clarify the obligations of tax payers for digital assets.
These changes when implemented will help maintain the US Competitive edge in digital economy.

[WillyAp]

Very nice indeed.

passing the federal budget without mentioning cryptocurrencies is kinda weird, coming from a crypto friendly administration, isn't it?

[Agbamoni]

This is super exciting! She may have the interest of crypto enthusiast at heart more than Trump.
If the goal is to establish dominance in the US then the plan is actually working. Removing tax for not so big transactions is a good step.  There might be chances to this in the future, in the meantime let the citizens be happy for the current win.

[kotajikikox]

Very nice indeed.

passing the federal budget without mentioning cryptocurrencies is kinda weird, coming from a crypto friendly administration, isn't it?

The senator mentioned digital assets though so maybe it is considered as part of that without the need to mention specifically cryptocurrencies. Still, the content of the bill is beneficial for anyone holding any kinds of digital assets as they do not have to worry much about the taxes that need to be paid. No need to get attention by mentioning crypto every time but instead just quietly pass on bills that will help investors.

[avp2306]

Very nice indeed.

passing the federal budget without mentioning cryptocurrencies is kinda weird, coming from a crypto friendly administration, isn't it?

The senator mentioned digital assets though so maybe it is considered as part of that without the need to mention specifically cryptocurrencies. Still, the content of the bill is beneficial for anyone holding any kinds of digital assets as they do not have to worry much about the taxes that need to be paid. No need to get attention by mentioning crypto every time but instead just quietly pass on bills that will help investors.

Provably cryptocurrency is included on that since it is also consider as digital asset. The good senator is pro Bitcoin and Crypto advocate which he have submitted many laws to make sure that US will adopt Bitcoin and people would benefit on those laws they created.

I also think this is helpful to anyone especially for those people used to transact low volumes on daily basis since they will be exempted on tax.

Really great to have a Senator like Cynthia Lummis since she really help to push some good laws for crypto in US.

Excited about the future especially if they could able to pass those good laws for digital assets.

[bitLeap]

1. Exemption of Tax for Small Transactions: transactions below $300 will be tax free with a yearly maximum of $5000
2. Deferral of taxes of mining and staking until the moment of assets sale. This addresses the issue of double taxation.
3. Tax Exemptions for crypto loans and charitable contributions in digital assets.

This is a very good draft, and it truly understands the retailer's concerns about running their business, which are often hampered by high taxes. The minimum threshold certainly provides flexibility for transactors, and honestly this method should serve as an example for other countries opening up to crypto. The bill aims to provide the necessary special space. I believe transactions under $300 are more than enough to continue to receive full public support.

[Smartvirus]

Key Focuses of the document:
1. Exemption of Tax for Small Transactions: transactions below $300 will be tax free with a yearly maximum of $5000
2. Deferral of taxes of mining and staking until the moment of assets sale. This addresses the issue of double taxation.
3. Tax Exemptions for crypto loans and charitable contributions in digital assets.

https://coingape.com/lummis-bill-simplifies-crypto-tax-compliance/

She believes this will help promote innovation, reduce bureaucratic hurdles and clarify the obligations of tax payers for digital assets.
These changes when implemented will help maintain the US Competitive edge in digital economy.

Of course it does. You wouldn’t expect an innovation and in this case, the cryptocurrency innovation to flourish in a state with hostile policies towards its growth, development and continuity.
I read from a user on the forum just days ago on how he intends to withdraw some of his cryptocurrency portfolio through his wife’s Latin American bank due to a more friendly tax rate of 15% flat as opposed to European rate which ranges from 33%-50% which is as steep as it could get.

To avoid huge taxation on crypto profits in Europe, I intend to send her half of my crypto portfolio.
I consider making an account for her on Binance, and funding her account with some of my crypto assets. She can cash out later this year.

If her Binance account is connected to her Latin American bank card, am I right that only Latin American tax agencies will be informed about her crypto assets/ transactions on Binance?

I don't see how a European tax agent would find her on Binance, when it is connected to a Latin American bank card and she does not have a European nationality.

At the moment she is a tax resident in Europe, but we want to move to Latin America around 2030. It is much more attractive for both of us to be tax residents there.

With reform bills such as these, it makes it easier for people to decide on how to manage and dutiful towards paying their taxes while making sure they are not being reaped.

[IceLincoln]

1. Exemption of Tax for Small Transactions: transactions below $300 will be tax free with a yearly maximum of $5000
2. Deferral of taxes of mining and staking until the moment of assets sale. This addresses the issue of double taxation.
3. Tax Exemptions for crypto loans and charitable contributions in digital assets.

This is a very good draft, and it truly understands the retailer's concerns about running their business, which are often hampered by high taxes. The minimum threshold certainly provides flexibility for transactors, and honestly this method should serve as an example for other countries opening up to crypto. The bill aims to provide the necessary special space. I believe transactions under $300 are more than enough to continue to receive full public support.

I see this as a very good plan for crypto enthusiasts especially the common man who wants to use crypto often, now you can carry out your small transactions and payment of some goods and services with crypto without worrying about taxes. I believe this is gonna make things easier for crypto users especially that double taxation for
Miners. They can now properly plan for their taxes without headaches knowing it’s a one time payment.
The bill is generally designed to make life easier for crypto users I really commend Sen. Lummis for all she’s doing for the crypto community.

[AmoreJaz]

1. Exemption of Tax for Small Transactions: transactions below $300 will be tax free with a yearly maximum of $5000
2. Deferral of taxes of mining and staking until the moment of assets sale. This addresses the issue of double taxation.
3. Tax Exemptions for crypto loans and charitable contributions in digital assets.

This is a very good draft, and it truly understands the retailer's concerns about running their business, which are often hampered by high taxes. The minimum threshold certainly provides flexibility for transactors, and honestly this method should serve as an example for other countries opening up to crypto. The bill aims to provide the necessary special space. I believe transactions under $300 are more than enough to continue to receive full public support.

Because like it or not, people are heading to crypto market and it is better to have such regulations in dealing with this market. So instead of chasing these crypto people away, why not charge them with taxes or other related fees if they go beyond the reasonable limit? And in that manner, it is a win-win situation as the crypto people can continue doing their thing and at the same time, they can collect taxes from them.

[Webetcoins]

Crypto is peaking toward another milestone along with this new bill. Avoiding double taxation for miners and exemption for small transactions and loans of this new bill are showing how a government should work for their people and I believe my country will learn from this.

I am seeing all three key features are in benefit of crypto investors. Small transactions with the cap of $5k in total per year is more than enough for a small crypto investor in my opinion. This way, with 2 family members, you may trade up to 10k without taxes. Hope this new bill will boost adaption of bitcoin in America at significant level.

[avikz]

I just came across this news today!
The senator who has been in forefront of advocating for bitcoin strategic reserve and better crypto policies.
She has once again introduced a new bill that should update the tax code on digital assets. This happened after the federal budget was passed without a single mention of cryptocurrencies.
Key Focuses of the document:
1. Exemption of Tax for Small Transactions: transactions below $300 will be tax free with a yearly maximum of $5000
2. Deferral of taxes of mining and staking until the moment of assets sale. This addresses the issue of double taxation.
3. Tax Exemptions for crypto loans and charitable contributions in digital assets.

https://coingape.com/lummis-bill-simplifies-crypto-tax-compliance/

She believes this will help promote innovation, reduce bureaucratic hurdles and clarify the obligations of tax payers for digital assets.
These changes when implemented will help maintain the US Competitive edge in digital economy.

Great! I can only see positives here! I wish every politicians think like this and helps countries to adopt crypto is a positive way. Unfortunately, many countries still see crypto as a potential threat.

I wish this bill is passed and make it into the book of tax law in US. It will open up real opportunities for further crypto adoption. It will help commoners like us to use crypto for small transactions with ease and without fear. It opens up doors for positive changes in crypto market.

[dezoel]

Crypto is peaking toward another milestone along with this new bill. Avoiding double taxation for miners and exemption for small transactions and loans of this new bill are showing how a government should work for their people and I believe my country will learn from this.

I am seeing all three key features are in benefit of crypto investors. Small transactions with the cap of $5k in total per year is more than enough for a small crypto investor in my opinion. This way, with 2 family members, you may trade up to 10k without taxes. Hope this new bill will boost adaption of bitcoin in America at significant level.

It is more like an update actually but this is still a good news for the poor users because a rich user won't surely mind the taxes as they can afford it and still have more after the deduction. Yeah each government should work things this way where we can say a "win-win situation" but some are just selfish or corrupt. There is no such thing as "being encouraged" on their vocabulary.

The only chance we have is if their term ends and we can vote wisely for a proper candidate next time. What you said about family member is a good strategy for us to experience more limit and still be exempted from tax. For sure this helps the adoption to increase in the said country. The rest can still benefit from it.

[Mate2237]

This is a welcome development as it concerns crypto currency especially as it concerns crypto currencies that are less than $300 that will be tax free this new laws will make attract customers to do more crypto transactions.


One thing that I have seen is that most government across the world that are serious about making crypto legal are only doing so due to the benefits that they can get from getting tax from crypto users

[criptoevangelista]

If the government doesn’t adapt, it will be left behind. I see that the more friendly bureaucrats are toward Bitcoin, the better it will be for them, because we’re reaching a point where the citizen will decide whether or not to pay taxes. Today, there are crypto cards that you can simply use to rent vehicles, properties, live comfortably, and have no ties to anything, after all, it’s just a credit card. Either the government adapts, or it will lose tax revenue.

[batang_bitcoin]

Those are good conditions about the sale of crypto that's been held for so long. I guess that most countries will refer to what this draft has been filed until it passes and becomes a law. We're here to look at the taxation of the bagholders out there. So, there's still a loophole in the system and that's like about the loans. The same goes for the fiat when loans are taken, I think that no tax is applied on it. Maybe the big whales and holders will make the most of this advantage if it's a law already.

[coyhasmon]

Great law with only great points. A tax exemption on spending crypto is a must and a great thing that will encourage more legitimate use on taxable goods and services. Further, there is no reason why crypto donations should not be tax exempt like other donations are.

[Zlantann]

She believes this will help promote innovation, reduce bureaucratic hurdles and clarify the obligations of tax payers for digital assets.
These changes when implemented will help maintain the US Competitive edge in digital economy.

If this bill is passed, it will encourage people to use crypto for small transactions, and it can also attract more crypto businesses to the United States. But I doubt if this bill will be passed without amendments. The country needs to raise more money from taxes; the exemption of businesses from tax might reduce the government's income. Senator Cynthia Lummis has been doing a great job in the US Senate, where she has been pushing for friendly crypto laws. The beauty of the provisions of this law is that it will make some complicated crypto laws simple.

[IceLincoln]

Update: The White House Press Secretary Karoline Leavitt said the Trump administration is looking into a de minimis tax exemption for Bitcoin transactions under $600. An additional $300 to the one proposed by senator Lummis. The crypto loving President has once again shown his support for the crypto community and this will help foster more crypto related bills and make it easier for Americans to use bitcoin and other crypto on a day to day basis.
Three major bills were passed this Thursday 17th July, the GENiUS Act, the CLARITY Act, and the Anti-Surveillance State Act, a major legislative win for crypto.
You can read more on this; https://www.cryptopolitan.com/trump-supports-a-de-minimis-tax-for-bitcoin/

Mr. President is really keeping to his promise.

[Iranus]

Three major bills were passed this Thursday 17th July, the GENiUS Act, the CLARITY Act, and the Anti-Surveillance State Act, a major legislative win for crypto.
You can read more on this; https://www.cryptopolitan.com/trump-supports-a-de-minimis-tax-for-bitcoin/

Mr. President is really keeping to his promise.

I would like to add that so far only the GENiUS bill has passed Congress and made it to the president's desk to be signed into Act. Meanwhile, the remaining two bills, the CLARITY Act and the Central Bank Digital Currency Ban, have only been passed by the House of Representatives, with no votes yet in the Senate. Both are still in the legislative process and we need to wait more.

If we ignore the tariff wars, the wars and the global unrest caused by his economic policies…Trump is a man of his word as he has delivered on most of his promises regarding cryptocurrencies.

[Fortify]

I just came across this news today!
The senator who has been in forefront of advocating for bitcoin strategic reserve and better crypto policies.
She has once again introduced a new bill that should update the tax code on digital assets. This happened after the federal budget was passed without a single mention of cryptocurrencies.
Key Focuses of the document:
1. Exemption of Tax for Small Transactions: transactions below $300 will be tax free with a yearly maximum of $5000
2. Deferral of taxes of mining and staking until the moment of assets sale. This addresses the issue of double taxation.
3. Tax Exemptions for crypto loans and charitable contributions in digital assets.

https://coingape.com/lummis-bill-simplifies-crypto-tax-compliance/

She believes this will help promote innovation, reduce bureaucratic hurdles and clarify the obligations of tax payers for digital assets.
These changes when implemented will help maintain the US Competitive edge in digital economy.

These sort of bills are a double edged sword - they're great for making Bitcoin more mainstream as a financial instrument. It will allow institutions to trade it more easily, because there are defined regulatory frameworks in place on how things should be declared when it comes to cryptocurrency, as grey areas often present a no-go for companies that really watch their reputation. However on the other side, it's going to increase enforcement and result in a drop in anonymity, which is what many people in the crypto space claim it should be about. Frankly, you can be legit and still make plenty of money in this space, but you have to pay attention to new laws like these - or at least use an accountant that is fully aware of them - when declaring your finances or you can fall foul of an expensive fine.