Cassidy Joins Legislation to Modernize Tax Rules for Cryptocurrency

WASHINGTON - U.S. Senator Bill Cassidy, M.D. (R-LA) joined legislation with Republican cryptocurrency champion U.S. Senator Cynthia Lummis (R-WY) to bring crypto tax treatment into the modern era. By fixing existing digital asset taxation challenges, the legislation promotes fairness, increases usability, and creates a level playing field for all users.

"A twenty-first-century economy requires twenty-first-century tax policy," said Dr. Cassidy. "This policy ensures the tax code works with you, not your great-great-grandfather. Now, whether you are using crypto to invest or just to buy your morning coffee, you can do it without worrying about a surprise tax bill."

"In order to maintain our competitive edge, we must change our tax code to embrace our digital economy, not burden digital asset users," said Senator Lummis. "This groundbreaking legislation is fully paid-for, cuts through the bureaucratic red tape and establishes common-sense rules that reflect how digital technologies function in the real world. We cannot allow our archaic tax policies to stifle American innovation, and my legislation ensures Americans can participate in the digital economy without inadvertent tax violations."

Background

This legislation addresses major digital asset taxation issues, including facilitating crypto use for purchases via a $300 de minimis rule, ending the double taxation of digital asset miners and stakers, parity with other financial assets (digital asset lending, wash sales, mark-to-market tax treatment), and providing that charitable contributions can be deducted at market value. The legislation is estimated by the Congressional Joint Committee on Taxation to generate approximately $600 million in net revenue during the 2025-2034 budget window.

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