New Lummis Bill Could Make Crypto Purchases Under $300 Tax-Free
Awaken Tax Brief: Senator Lummis Unveils $300 Crypto De Minimis Bill
On July 3 2025, Senator Cynthia Lummis (R-WY) introduced a standalone digital-asset tax bill that would exempt crypto transactions and capital gains of $300 or less from federal income tax. Watcher Guru first flagged the news in a post on X: “JUST IN: Senator Lummis introduces bill to exempt tax on crypto transactions under $300.”
Key provisions at a glance
$300 de minimis exclusion for both the transaction’s value and any gain, indexed to inflation from 2026 and capped at $5,000 in total annual exempt gains.
Deferral of income from mining and staking until the rewarded coins are sold, eliminating today’s “tax-on-receipt” pain point.
Digital-asset lending parity with securities-lending rules (IRC §1058) so routine lending is not a taxable event.
Wash-sale rules extended to crypto, closing a loophole that currently allows unlimited tax-loss harvesting.
Optional mark-to-market election for dealers/traders and appraisal relief for crypto donations.
How this differs from earlier proposals
The long-running Virtual Currency Tax Fairness Act sought a $200 threshold; Senator Lummis’ bill raises the bar to $300, giving everyday users a wider buffer while staying under the $5 k annual cap.
What it means for U.S. crypto users
Everyday spending gets simpler. Buying a coffee with BTC, paying a friend back in SOL, or moving small sums between wallets would no longer trigger capital-gains tracking—provided your yearly exempt gains stay under $5 k.
Miners and stakers breathe easier. Income tax is pushed to the moment of sale, aligning cash flow with tax liability.
Record-keeping still matters. Transactions over $300, swaps for other crypto, or sales into cash remain taxable events.
Implications for Awaken Tax clients
Awaken Tax will automatically apply the new de minimis rules once the bill becomes law. Until then, nothing changes in your 2025 filing: you still must report all crypto disposals, no matter how small. We’ll monitor the bill’s progress and update our software, guidance, and educational materials the moment it clears Congress.
Next steps
The proposal now heads to the Senate Finance Committee, where bipartisan support—and a crypto-friendlier Congress—gives it a stronger chance than past attempts. Still, passage is not guaranteed; industry advocates are gearing up to push the measure through the House and onto the President’s desk later this year. If you want to read more about this topic you can visit: lummis.senate.gov.
