Sen. Cynthia Lummis (R-Wyo.) unveiled new legislation Thursday updating tax rules for cryptocurrencies, as Congress continues to move toward establishing a comprehensive regulatory regime for digital assets.
“In order to maintain our competitive edge, we must change our tax code to embrace our digital economy, not burden digital asset users,” Lummis said in a statement.
The crypto tax package would establish a de minimis rule for digital assets, exempting small transactions under $300 from taxes, in addition to exempting crypto lending from taxes and deferring taxes on income generated from crypto mining and staking until tokens are sold.
It would also apply the typical 30-day wash rule to digital assets, removing a loophole that has allowed crypto investors to sell tokens at a loss and then quickly buy them up again while still claiming a tax deduction.
Crypto dealers and traders would also be eligible for mark-to-market treatment under the rules. This means that crypto holdings, like securities holdings, could be considered as if they were sold at market price at the end of the year for tax purposes, allowing individuals to claim losses that can then be deducted from their taxes.
Lummis underscored Thursday that the Congressional Joint Committee on Taxation estimates the bill would generate about $600 million through 2034.
“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,” she said.
“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,” Lummis added.
The Wyoming Republican indicated earlier this week that she hoped to get crypto tax provisions into President Trump’s sweeping tax and spending bill. However, the legislation ultimately passed out of the Senate on Tuesday without the measures.
Despite being left out of the reconciliation bill, the crypto tax package enters the fray at a moment when Congress is particularly receptive to digital assets legislation. The Senate passed a bill last month to establish a regulatory framework for stablecoins.
Meanwhile, House panels have advanced both stablecoin legislation and legislation divvying up oversight of the broader crypto market between two financial regulators. The lower chamber is expected to take up the crypto bills later this month.
Read More Details
Finally We wish PressBee provided you with enough information of ( Senate Republican unveils digital assets taxation package )
Also on site :