Senator Cynthia Lummis proposed an amendment to address digital asset tax treatment. The amendment aims to eliminate double taxation on miners and stakers, who currently face taxation upon receiving block rewards and again when selling them. This initiative seeks to position the United States as a global leader in the crypto space. (Source: time.com, axios.com)
The proposed amendment includes a de minimis exemption with a $300 threshold and clarifies the taxation of mining and staking rewards. Industry advocates, such as Matthew Pine, are urging support for the exemption to reduce the burden of capital gains calculations on minor purchases. Dennis Porter suggests taxing rewards only upon disposition, aligning them with self-generated property. (Source: time.com, axios.com)
Supporters believe this week's committee negotiations offer a critical opportunity to incorporate digital asset provisions. They argue that the combined exemption and reward timing fix would streamline reporting and reduce compliance costs. The draft text has not been released, and the advancement of the issues remains uncertain. (Source: time.com, axios.com)