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The crypto tax bill proposed by Senator Cynthia Lummis is on the radar of U.S. policy and digital asset industries, Cointelegraph reported. JULY 3, 2025 The bill wants to revamp crypto tax treatment by exempting gains from transactions under $300 with a $5,000 annual limit when it was proposed on July 3, 2025.
The bill is comprised of a number of amendments to the Internal Revenue Code to change the way micro-payments, staking, lending, and mining rewards are taxed. The passage of the bill, if approved, could transform digital asset tax requirements across the country one way or the other. The Treasury would also index thresholds for inflation starting in 2026.
The Crypto Tax Bill Allows Tax-Free Micro-Payments Under $300
Central to the crypto tax bill is a provision to exempt crypto payments under $300 from capital gains taxes, with an annual aggregate cap of $5,000. Those thresholds would be adjusted for inflation, beginning in 2026 and lasting until 2035.
Senator Lummis’ office also highlighted that the bill would “remove bureaucratic red tape” and ensure that Americans are able to take part in the digital economy without falling into unintentional tax violations. The crypto tax proposal would make taxpayers separate eligible transactions with their own wallets or accounting records in order to stay in compliance.
Bitcoin Lending and Staking Rewards to be Delayed till Sold
The bipartisan crypto tax bill would significantly change how income from lending and staking digital assets is taxed. Rather than taxing users upon receipt, income would be recognized at the time of sale of tokens, and users would benefit from a welcomed clarity and significant alleviation.
Summary of Technical Tax Amendments
Notably, digital assets are now within the safe harbor for securities lending in Section 1058.
Section 1091 applies wash-sale rules to crypto assets and their derivatives, subject to an exception for stablecoins and dealer inventory.
New Section 475(g) allows mark-to-market accounting for actively traded tokens by crypto dealers and traders without the need for previous IRS consent.
This section of the crypto tax bill brings consistent treatment to both mining and staking rewards according to taxable events rooted in real liquidity, not ‘paper’ income in virtual spaces.
Market Bitcoin Price Prediction Rise as Tax Relief Takes Shape
The crypto market is closely watching the progress of legislation, especially as Bitcoin clings to the $109,200 level. Bitcoin Price Prediction: Just after the announcement of the bill, bullish Bitcoin price prediction trends return.
Latest Bitcoin Price Prediction Data:
| Source | Short-Term (Jul 2025) | 2025 Year-End | 2030 Long-Term |
| Changelly | $130,978 | $168,000 | $400,000+ |
| Bitwise | $136,000 | $180,000 | $500,000 |
| CoinPedia | $129,500 | $162,000 | $380K–$900K |
Cryptocurrency investors and analysts point to the crypto tax bill as an under-the-radar reason for pushing higher Bitcoin price predictions; better tax reporting could mean greater adoption.
Deferred Mining Income and Announced Incentives for Giving to Charity
Block validation income will also be treated differently under the crypto tax bill. Discontinuation of Mining and Staking Income Attributed on Receipt Miners and stakers will not include income on receipt whatsoever. Instead, you will take income recognition once the reward tokens are sold.
And now, private foundations can receive appreciated digital assets under these identical rules for public stocks. This could spread in good charitable givings among wealthy people with crypto.
How the Market and Community Reacted to the Crypto Tax Bill
Positive sentiment in Reddit comments from r/cryptotax and r/cryptocurrency:
“Not going to be tracking any gains from a $2 sandwich paid for in crypto. This is massive,”
one commenter wrote.
On X (previously Twitter), finance influencers point to the potential for more retail adoption. One popular post reads:
“The Lummis crypto tax bill may finally make crypto useful for everyday purchases. If this becomes law, it is a game changer.”
The United States Is Not Alone on Tax Change
This legislative move comes as worldwide crypto tax systems experience similar overhauls. Tax-exempt thresholds are already in place in countries such as Germany and Portugal. Pakistan’s announcement of the creation of a new Bitcoin reserve policy last month shows how governments are now reconsidering their position on digital assets.
The confirmed timing of the crypto tax bill coincides with the continuing geopolitical effort of incorporating digital assets into sovereign fiscal planning.
Expert View on Bitcoin and Regulation
Analysts who specialize in taxation and in laws related to digital finance see the crypto tax bill as a sign of good things to come when it comes to regulatory clarity. Containing several 2035 sunset provisions, the bill attempts to balance taxpayer relief with a Congressional revenue-neutral budget.
When taken together with encouraging Bitcoin price prediction models, the new regulatory climate may also establish the crypto industry’s long-term viability in the U.S.
Final Thoughts
The introduced crypto tax bill is just one part of that effort and a remarkable policy shift toward crypto normalcy. By relieving low-value transactions from taxes and deferring the taxation of staking and mining, the law encourages the development of both institutional and organic usage.
At a time when Bitcoin price prediction models are bullish and the digital economy is growing, the policy change could accelerate more broad-based adoption.
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Summary
Senator Introduces A Crypto Tax Bill Seeking To Exclude Microtransactions Under $300 and Defer Taxes On Staking Rewards Until Sale The legislation will provide a safe harbor for borrowing, expand wash-sale rules, and create mark-to-market options for traders.
Intended to make IRS reporting easier and encourage the uptake of the industry, the bill is likely to affect a vast number of crypto users and influence the U.S.’s digital asset tax policy.
Frequently Asked Questions
1. What does the crypto tax bill have to say about micro-transactions?
The bill also excludes crypto transactions up to $300 from capital gains tax (up to $5,000 in a year), making everyday use of crypto for small purchases less complicated.
2. What does the new crypto tax bill mean for staking rewards?
You won’t be taxed on staking rewards when you receive them. Instead, they’re taxed only at the point of selling off the earned tokens, which defers taxes temporarily.
3. What do crypto lenders and traders get out of the bill?
The bill puts in place a safe harbor for crypto lending and adds optional mark-to-market accounting for traders to help in avoiding surprise tax bills and allowing for flexibility.
4. Are there any exemptions from the crypto tax bill?
Yes, the tax-free micro-payment limit is indexed for inflation after 2026, and the provision sunsets in 2035, with anti-abuse rules to prevent loss harvesting.
Glossary of Key Terms
1. Crypto Tax Bill
A bill that seeks to modernize the taxation of cryptocurrencies in the U.S., which would let small transactions not have to pay taxes and would not subject staking returns to tax for at least 6 months.
2. Micro-Transactions
Tiny crypto payments, usually less than \$300. The proposed law would give tax immunity to transactions with digital currencies to promote their use in everyday life.
3. Staking Rewards
Consensus Participatory: Tokens earned through participation in a blockchain’s consensus mechanism. Under the bill, those are taxed only when sold, not when received.
4. Safe Harbor
A section of the law that makes certain activities exempt from taxes. Advertisement The legislation creates safe harbor provisions for the emerging category of crypto lending, enabling the deferral of tax events.
5. Wash Sale Rule
A tax provision that prevents claiming a loss on a security that was sold and repurchased within 30 days. The bill wants to make this apply as well to crypto assets.
6. Mark-to-Market Accounting
One approach included valuing assets at the then current market price once per year. The bill permits this for active crypto traders without the need for pre-approval from the IRS.
7. Digital Asset
Any cryptographic token, recorded on a blockchain, that stores value. The legislation would also legally codify them and IRS regulations for tax reporting.
8. Inflation Indexing
A change to the dollar amounts of various provisions of the tax law to reflect inflation. Under the bill, the \$300 transaction cap shifts after 2026 so that it keeps its value over time.
