The Senator asserts her tax proposal will enable US citizens to interact with the crypto market without accidentally accumulating a tax liability. The feasibility of her bill is justified by projections from the Congressional Joint Committee on Taxation, predicting a revenue generation of $600 million by 2035.

This is a momentous move for the crypto space that has long faced regulatory ambiguities and seeks to adopt financial innovations without oppressive tax obligations.

“This trailblazing legislation”, Senator Lummis stated, “is fully funded, slashes bureaucratic obstacles, and establishes practical rules that mirror how digital technologies operate in the real world. Outdated tax policies shouldn’t hamper American innovation, and my legislation ensures Americans can engage in the digital economy without unintended tax infractions.”

Lummis’ Crypto Tax Bill conforms to the existing agenda championed under President Trump’s administration, introducing sensible tax laws that empower American businesses to prosper in a globally competitive market. Lummis has set a practical tax exemption limit for digital asset transactions that are less than $300, with an annual cap of $5,000.

Despite their name suggesting otherwise, many nations do not recognize cryptocurrencies as currencies, leading to considerable uncertainty in crypto regulation, especially in terms of tax obligations. The proposed bill by Senator Lummis could represent a significant breakthrough for global crypto traders. With Lummis’ crypto tax, people could make small purchases such as a cup of coffee without incurring capital gains tax.

The Congressional Joint Committee on Taxation estimates that Lummis’s legislation would generate $600 million through 2034, a figure that Senator Lummis likes to highlight. She emphasizes that the bill mirrors real-world usage of cryptocurrencies. Senator Lummis, a Republican from Wyoming, may have a high chance of passing the bill given the significant tax exemption it proposes.

This legislation could transform America into a crypto powerhouse if the industry is provided suitable tax incentives. Senator Lummis firmly believes this and underlines the need to equip Americans with sensible tax provisions. She is a vocal advocate for Bitcoin and other digital assets and thinks that stringent tax rules are hindering people from exploring cryptocurrencies. Her goal is to formulate laws that encourage cryptocurrency usage without imposing hefty tax obligations.

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The amendment, championed by Sen. Lummis, aimed to address the “unfair tax treatment” of digital assets. Lummis stated on Tuesday that she would continue to push for her proposal, expressing optimism about the productive conversations she has had with the Senate Finance Committee Chairman, Mike Crapo, and other committee members.

The proposed amendment included a de minimis exclusion, setting a $300 threshold, and guidelines for taxing cryptocurrency miners and stakers. Crypto advocacy groups have long been lobbying for changes in how cryptocurrency is taxed, with a particular emphasis on a de minimis exemption.

The vote ended in a 50-50 tie, with Vice President JD Vance casting the deciding vote. Ahead of the vote, crypto experts encouraged the public to reach out to lawmakers, including Senate Majority Leader John Thune, to express their support.

Alexander Grieve, vice president of government affairs at Paradigm, expressed his gratitude to @SenLummis, @MikeCrapo, @SenatorTimScott, & @LeaderJohnThune for their efforts, and to the community for their support. He reassured everyone that they would find another way to get the job done.

The reconciliation bill will next proceed to the House, with President Trump’s Friday deadline fast approaching.

Disclaimer: The Block is an independent media outlet that provides news, research, and data on the crypto industry. Foresight Ventures, a majority investor of The Block, also invests in other crypto companies. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry.

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Senator Lummis is back with her strategic Bitcoin reserve bill, the “Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide Act,” or BITCOIN Act. This legislation, which aligns with a recent executive order from President Trump, aims to establish a Strategic Bitcoin Reserve to fortify the American balance sheet. The bill had initially been proposed in July 2024 and has undergone minor alterations since. The plan includes the creation of a decentralized network of Bitcoin vaults managed by the U.S. Treasury and a program to acquire 1 million BTC over a predetermined period. This would approximate a 5% stake in the total Bitcoin supply, mirroring the amount of gold reserves held by the United States.

Blockchain scaling company StarkWare is also making waves in the crypto sphere by setting up its own “Strategic Bitcoin Reserve”. CEO and co-founder Eli Ben-Sasson did not disclose the exact amount of Bitcoin that the company holds or plans to acquire, but emphasized, “we put our money where our mouths are”. StarkWare, the main contributor to Ethereum’s Layer 2 Starknet, has in recent years increasingly invested time and resources into Bitcoin research.

Meanwhile, Crypto asset manager Bitwise has launched its Bitcoin Standard Corporations ETF (OWNB). This tracks companies holding at least 1,000 BTC in their treasury. Additionally, Cboe BZX Exchange has filed a form with the Securities and Exchange Commission seeking permission to allow staking in Fidelity’s spot Ethereum ETF (FETH).

Lastly, Taproot Wizards, the Bitcoin Ordinals project, is set to hold its first public sale of its Wizards NFT collection on March 25. The sale will include 2,121 NFTs, and will exclude 13 honorary Wizard images that resemble notable figures in the crypto world.

The post Crypto Recap: Lummis Revives Bitcoin Reserve Bill, StarkWare Sets Up BTC Treasury, and More appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.