Efforts led by Senator Cynthia Lummis to introduce cryptocurrency-specific tax reforms were halted by a Senate vote rejecting her proposed amendment.
The amendment aimed to address perceived tax burdens within the digital asset sector, notably proposing that the existing “wash sale” rule, preventing tax deductions for repurchased securities within 30 days of a loss sale, should not apply to cryptocurrencies.
Additionally, the legislation sought relief for small-scale cryptocurrency transactions, proposing exemptions for reporting burdens associated with common activities like buying coffee.
This rejection underscores ongoing legislative challenges facing the cryptocurrency industry even as advocates push for tailored regulatory frameworks.
The Senate’s decision signals a continuation of applying traditional securities tax rules to cryptocurrencies for now, leaving industry participants awaiting future proposals.