Lummis Douses Hopes for Crypto Tax Legislation This Year

Sen. Cynthia Lummis (R-Wyo.) is casting doubt on whether any crypto tax legislation will pass this year, citing reluctance from lawmakers in the Senate Finance Committee to reopen the tax code during the post-election lame-duck session.

Lummis' comments come as the House Ways and Means Committee approved the Digital Asset Tax Certainty Act (H.R. 10357) on September 16, which aims to clarify various aspects of crypto taxation, including de minimis exemptions, mark-to-market accounting, and rules for wash sales, mining, and staking.

The bill would provide clarity on how income from these activities is treated, but its passage in the Senate remains uncertain. Lummis noted that it 'will surprise me if anything tax-related on digital assets gets done in the lame duck.'

The delay may be attributed to concerns that any amendments could drift away from the Working Families Tax Cut bill passed last year. The proposed legislation, including the ADAPT Act and the CLARITY Act, has been met with mixed results.

Without new legislation, taxpayers will continue to operate under the existing framework, which can be a 'paperwork headache' for everyday crypto purchases. Proposals like S. 2207's $300 threshold are designed to make small crypto payments practical, but they remain theoretical until passed.