A bill to amend the Internal Revenue Code of 1986 to reform the treatment of digital assets.
Sponsored By: Senator Sen. Lummis, Cynthia M. [R-WY]
Introduced
Summary
This bill would create a tax framework for digital assets in the Internal Revenue Code. It would define key crypto terms, change when crypto gains are taxed, and give the Treasury broad authority to write rules on reporting, basis, and related issues.
Show full summary
- Households and casual users would get a de minimis exclusion for personal digital-asset purchases used to buy goods or services, but must keep records or separate wallets. The exclusion caps value or loss at $300 per transaction and stops for the year if total gains exceed $5,000.
- Dealers, traders, and brokers would face a new "specified assets" regime that includes actively traded digital assets, adds a 30-day wash-sale disallowance, increases broker reporting and basis adjustment rules, and offers a mark-to-market election for dealers.
- Miners and validators could defer income from mining and staking until they sell the generated assets, with that income taxed as ordinary income. The bill also explicitly lets donors claim charitable deductions for appreciated actively traded digital assets.
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 2 benefits, 1 costs, 3 mixed.
Charitable crypto donations count
If enacted, actively traded digital assets would be explicitly treated as eligible noncash gifts for the charitable contribution rules. The bill would create a 'qualified appreciated digital asset' category for private foundation contribution rules when the asset is actively traded and is capital gain property. These rules would apply to gifts made in tax years after enactment and the defined term would not apply to gifts in tax years after December 31, 2035.
Exclude small crypto purchases
If enacted, this bill would let you exclude small gains or losses when you use crypto to buy goods or services in a personal sale. The exclusion would cap each transaction at $300 for value or $300 for loss. If your total eligible gains in a year exceed $5,000, you could not use the exclusion that year. The rule would apply to transactions after December 31, 2025 and end for tax years after December 31, 2035.
New wash-sale rules for crypto
If enacted, the bill would expand wash-sale loss disallowance to 'specified assets,' including digital assets as defined by the Treasury. You could not deduct a loss if you bought a substantially identical specified asset within 30 days before or after the sale; the disallowed loss would be added to the basis of the acquired asset. Exceptions would apply for dealers trading in the ordinary course and for qualifying payment stablecoins. These rules would apply to sales after December 31, 2025 and would be repealed after December 31, 2035.
Delay tax on mining and staking
If enacted, people who validate digital assets (including miners and stakers) could defer reporting income from validation until they sell or otherwise dispose of the assets. Any income recognized on that later sale would be taxed as ordinary income. The bill would use the recipient's residence to determine income source and lets Treasury issue rules on forks and airdrops. The rule would apply to tax years after enactment and stop applying after December 31, 2035.
Mark-to-market election for dealers
If enacted, dealers or traders in specified digital assets could elect section 475 mark-to-market treatment without prior IRS consent. The election would apply for the year made and later years unless the IRS allows revocation. The choice would be limited to actively traded specified assets and would apply to sales after enactment. The rule would not apply for tax years beginning after December 31, 2035.
New tax rules for crypto lending
If enacted, lenders of digital assets would have to include in gross income the amount they would have earned if they had not lent the asset. The bill requires appropriate basis adjustments to assets subject to lending, including when lent assets are returned. 'Specified asset' would include actively traded digital assets. These rules would apply to tax years after enactment and would not apply after December 31, 2035.
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Sponsors & CoSponsors
Sponsor
Sen. Lummis, Cynthia M. [R-WY]
WY • R
Cosponsors
Sen. Blackburn, Marsha [R-TN]
TN • R
Sponsored 9/2/2025
Sen. Cassidy, Bill [R-LA]
LA • R
Sponsored 9/2/2025
Sen. Cornyn, John [R-TX]
TX • R
Sponsored 12/1/2025
Roll Call Votes
No roll call votes available for this bill.
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