Bitcoin New: Influential Senator Lummis pushes new law for Crypto taxes | Bitcoinist.com

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• US Senator Cynthia Lummis aims to modernize the tax treatment of Bitcoin and Co.
• A bill provides, among other things, tax exemption for smaller transactions under 300 dollars.
• The Senate Finance Committee is working across party lines on a new framework for digital assets.

Cryptocurrencies are long more than a niche phenomenon. In the USA, they are now increasingly coming into the focus of politics, as Senator Cynthia Lummis is working with colleagues on new rules for the taxation of digital assets. The debate could have far-reaching consequences for investors, companies, and the entire crypto market.

Political Initiative for Digital Assets

Senator Cynthia Lummis reaffirmed at an event in Washington that the tax treatment of cryptocurrencies urgently needs reform. Already in July, she introduced a bill that aims to exempt small transactions up to a limit of 300 US dollars from taxes. This step is intended to facilitate everyday payments with Bitcoin and other coins and reduce bureaucracy. Additionally, lending digital assets should no longer be considered a taxable event according to her draft, giving investors more flexibility.

The aim of the reform is to end legal uncertainty and promote innovation in the USA. Lummis emphasizes that the current tax practice hinders investors and burdens the crypto market. With her proposals, she wants to give the USA a leading role. Many industry representatives welcome the initiative as they rely on clear and reliable rules. The senator has been advocating for cryptocurrencies for years and has earned a reputation as one of the strongest proponents of digital assets in Congress.

Collaboration in the Senate

The Senate Finance Committee plays a crucial role in drafting the new rules. According to Lummis, the committee is currently working on a draft that includes ten key points, nine of which directly stem from their previous proposals. She spoke of a significant progress that shows bipartisan cooperation is possible. She particularly highlighted Senator Ron Wyden, who, as a Democrat, is a close partner on this issue.

The debate over cryptocurrencies is not new in Congress, but previous attempts at clear tax regulations have failed. Lummis had already tried to incorporate her ideas into broader legislative packages, albeit without success. Now, the dynamics seem more favorable as more and more lawmakers recognize the economic value of cryptocurrencies. Supporters hope that an agreement on tax issues could also signal broader acceptance of digital assets.

Influence of the Crypto Lobby

Various interest groups in the crypto industry have been calling for a reform of taxation for years. In particular, the so-called de-minimis rule, which exempts small transactions from taxes, is considered a core demand. For everyday payments with Bitcoin, this would be a decisive step, as until now every smallest transaction had to be documented for tax purposes. Many companies and private users have criticized this as a hindrance.

Read here why more and more companies in the USA are relying on Ethereum (ETH).

Support from the business sector could be crucial for the success of the legislation. Lummis emphasizes that an innovation-friendly environment must be created so that the USA does not fall behind other regions. Crypto hubs are increasingly emerging in Europe and Asia, attracting investors. With a clear tax regulation, the USA could hold its ground and strengthen its position as a global financial center. However, critics see the danger that overly generous rules could open loopholes.

Upcoming Hearing

On Wednesday, the Finance Committee plans a hearing titled "Examining the Taxation of Digital Assets." Among the invited experts are representatives from Coin Center as well as attorney Andrea S. Kramer. They are expected to shed light on the industry's perspective and legal aspects. This hearing is regarded as an important step in the legislative process and could determine the direction of the reform.

The discussion takes place during a politically tense time, as a possible government shutdown looms. If Congress does not reach an agreement on the budget by October 1, many processes could come to a halt. According to a spokesperson, the hearing on digital assets would still take place as planned even in the event of a shutdown. This signals that the Senate considers the issue to be of the highest priority. Investors and companies are eagerly awaiting the results.

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