The amendment proposes excluding crypto transactions under $300 from taxation, with a yearly cap of $5,000 for untaxed crypto activity.
It would change how staking and mining rewards are taxed, moving taxation to the point of sale instead of when rewards are received.
The amendment also includes changes to crypto lending, wash sale rules, and charitable donations to simplify overall compliance.
Senator Cynthia Lummis is proposing a major amendment to President Donald Trump’s sweeping budget reconciliation bill aimed at reforming crypto tax rules.
The proposal, presented on June 30, is devoted to the exemption of small transactions with digital assets and the clarification of the taxation of miners and stakers. Lummis is insisting on the insertion of the amendment in the more than 1,000-page package that describes the major fiscal and regulatory changes.
The amendment provides an exemption of de minimis, according to which crypto transactions less than $300 should be exempted with regard to capital gains tax. It also sets a limit of untaxed applications to 5000 in a year to lower the load of activities on those who use more.
Additionally, the proposal adjusts the tax treatment of staking and mining rewards. Rather than taxing these at the time of receipt, the amendment aligns taxation with the point of sale, a change that crypto advocates say would resolve double taxation issues.
Broader Tax Changes Cover Lending and Donations
Beyond staking and small trades, the amendment also addresses the tax framework for other forms of crypto activity. This includes proposed adjustments to tax rules involving crypto lending, wash sales, and charitable contributions.
Lummis’ office argues that these updates are necessary to align existing tax law with the realities of the digital asset economy. Supporters say the changes would encourage both long-term holding and mainstream usage of cryptocurrencies.
Industry Groups and Executives Back the Proposal
Crypto advocacy groups have expressed strong support. The Bitcoin Policy Institute, the Solana Policy Institute, and several industry leaders, including Michael Saylor, have publicly endorsed the amendment.
Matthew Pines of the Bitcoin Policy Institute urged the public to contact members of the Senate Finance Committee. He stated that such reforms would support everyday compliance and expand adoption. Kristin Smith from the Solana Policy Institute added that clarity around staking rewards could help create domestic jobs and support innovation.
The fate of the amendment is yet to be seen, though it has gained favor in the industry. The Senate will be voting on a number of amendments to the bill within the week.
President Trump has requested that the lawmakers conclude the bill before July 5. When it clears the Senate, it will also have to clear the House of Representatives before being classified as a bill of the president.
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