U.S. Senator Cynthia Lummis is working to include a substantial crypto tax provision in the extensive budget bill backing much of President Trump’s agenda, with the potential to alleviate tax liabilities related to essential cryptocurrency operations.

Lummis aims to introduce new language to Congress’ “Big Beautiful Bill,” which would exempt taxes on minor crypto transactions under $300. This approach seeks to streamline a tax process that currently taxes users on both the initiation and completion of activities involving staking and cryptocurrency mining.

The proposed amendment advocates for the removal of tax charges for small transactions, capped annually at $5,000, effectively relieving individuals engaged in minimal digital asset transactions from capital gains computation. This initiative is expected to encourage more people to explore cryptocurrencies.

“For years, miners and stakers have been taxed TWICE. Once when they receive block rewards, and again when they sell it. It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower. 🇺🇸”
— Senator Cynthia Lummis (@SenLummis) June 30, 2025

Lummis’s amendment, still awaiting a vote, also targets tax-related matters concerning crypto lending, wash sales, and donations.

The Digital Chamber described Lummis’s provision as a long-awaited correction in the treatment of mining and staking rewards for tax purposes, shifting the tax collection to only apply upon the asset’s final sale, which aligns taxation with realized income.

By proposing tax exemptions for small transactions and addressing various tax complexities within the crypto sector, Lummis’s efforts signify a critical move toward more equitable treatment for crypto investors.