Senator Cynthia Lummis of Wyoming has introduced a draft bill aimed at reforming the taxation of cryptocurrencies, following unsuccessful attempts to amend the budget package regarding digital assets. The proposed legislation seeks to eliminate double taxation and provide clarity on the tax implications for crypto staking, mining, and lending transactions. It suggests a de minimis exemption for digital asset transactions and capital gains of $300 or less, with a maximum annual exemption of $5,000. Additionally, the bill aims to exempt crypto lending agreements from taxation and defers taxes on mining until the assets are sold. Lummis emphasized that the bill is designed to simplify tax obligations and encourage participation in the digital economy without the risk of accidental tax violations. With the current lack of clarity around crypto taxation being a significant concern for investors and users, this standalone bill represents Lummis' best opportunity to promote pro-crypto legislation amid existing bureaucratic challenges.

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