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Senator Lummis’s Crypto Bill May End Double Taxation

Senator Lummis’s Crypto Bill May End Double Taxation

US Senator Cynthia Lummis submitted a draft bill on Thursday proposing to exempt certain crypto transactions from taxation and defer taxes on mining and staking rewards until the underlying tokens are sold.

“My legislation ensures Americans can participate in the digital economy without inadvertent tax violations,”  said Lummis.

The senator’s draft bill was published three weeks after the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, passed the Senate in a 68–30 vote on June 11, Cointelegraph reported. 

The GENIUS Act may “legitimize” stablecoins for institutional participants by setting clear collateralization standards, cementing them as a “better form of money,” said Andrei Grachev, managing partner at DWF Labs and Falcon Finance.

The increasing US regulatory clarity may enable more traditional finance players to seek out decentralized financial services, due to their disappointment with traditional banking services, according to Aave Labs founder Stani Kulechov.

“Thanks to horrible banking experiences, we’ve seen a lot of finance coming into fintech, and fintech applications able to capture a lot of market share,” Kulechov said onstage at EthCC 2025.

Beyond decentralized finance (DeFi), the tokenization of real-world assets is a “multi-trillion-dollar opportunity” for the crypto sector to engage with traditional finance, added Kulechov.

Stani Kulechov onstage at EthCC 2025 in Cannes, France. Source: EthCC

In the wider crypto space, Chainlink, a decentralized blockchain oracle network for crosschain communication, launched a new compliance framework aimed at unlocking over $100 trillion worth of institutional capital for the crypto market.

“Chainlink ACE is the compliance and identity standard the tokenized asset economy has been waiting for, with today’s launch providing a final critical building block for over $100 trillion in institutional capital to move onchain,” said Sergey Nazarov, the co-founder of Chainlink.

US Senator Cynthia Lummis drafts standalone crypto tax bill

US Senator Cynthia Lummis submitted a draft bill on Thursday, outlining several provisions to overhaul the tax code and exempt certain digital asset transactions from taxation after crypto amendments failed to appear in the budget package.

The bill proposes a de minimis exemption for digital asset transactions and capital gains of $300 or less, with a $5,000 annual exemption cap.

The Wyoming Senator also outlined provisions…

Click Here to Read the Full Original Article at Cointelegraph.com News…