Bitcoin senator pushes for tax breaks on crypto

Cynthia Lummis, the Republican senator from Wyoming and a self-described Bitcoin fan from day one, unveiled on Thursday an ambitious bill that would give the American crypto industry a substantial tax break.

Cynthia Lummis, the Republican senator from Wyoming and a self-described Bitcoin fan from day one, has on Thursday proposed a bold bill that would give the American crypto industry a substantial tax runway. Her “Lummis Crypto Tax Bill” includes a package of tax benefits for digital asset users and comes after earlier attempts to fold crypto-friendly measures into Trump’s “Big Beautiful Bill” failed.

The core of the new bill: a $300 tax-free threshold on daily crypto transactions. That means Americans could soon pay for coffee, groceries, or a train ticket with Bitcoin, Ethereum, or other cryptos without capital gains tax. Supporters say this is the turbo charge crypto needs as a medium of exchange for mass adoption.

Lummis isn’t stopping at tax cuts. She is pushing for a radical move: the U.S. should buy one million Bitcoin within five years, a roughly $109 billion investment at current prices. “Bitcoin isn’t a hype. It’s a strategic necessity. It lays the economic groundwork for future generations,” Lummis said. “America should not watch from the sidelines but lead.”

The bill goes beyond Bitcoin. Altcoins would also benefit from the proposed changes. For example, unrealized gains would be easier to recognize for accounting purposes, and mining and staking income would be taxed as ordinary income only when sold.

An exact Senate vote date hasn’t been set, but the proposal follows the recent passage of the GENIUS Act, another crypto-friendly bill focused on more transparency in the stablecoin market.

Want to stay in the loop on Lummis’ bill, Bitcoin adoption as a strategic reserve, or other crypto regulation? Stay tuned. The race between regulation and innovation is on, and the stakes are nothing less than the financial future.