US Senator Cynthia Lummis has introduced bipartisan legislation focused on overhauling cryptocurrency tax regulations to alleviate longstanding burdens within the domestic market.
The proposed Bitcoin tax bill specifically targets simplifying reporting requirements while addressing core complaints around double taxation penalties.
Key provisions introduce exemptions for cryptocurrency lending activities, eliminating tax triggers previously associated with transferring assets for collateral.
The bill also proposes permanent exemptions for donations made in crypto for charitable contributions, facilitating philanthropic giving with digital assets.
A central element seeks to prevent premature taxation on unrealized gains during routine transactions, aiming to ease significant cash flow strain experienced by investors.
Industry stakeholders welcome the legislation as a crucial advancement toward providing much-needed tax clarity, potentially boosting participation and growth in the US crypto ecosystem.
The bill aligns strongly with recent legislative initiatives, including the Digital Asset Market Clarity Act of 2025, reflecting ongoing efforts to establish clear regulatory frameworks, particularly concerning decentralized finance (DeFi) operations.