Bitcoin has surged toward its all-time high in recent weeks, adding around 50% since dropping to its April lows as crypto changes the game for Elon Musk’s SpaceX and ChatGPT maker OpenAI.
The bitcoin price, which is braced for a “big” month ahead after the White House crypto czar teased a major update, has climbed to give bitcoin a total market capitalization of more than $2 trillion, with bullish traders predicting a looming bitcoin price boom.
Now, as traders eye “trillions and trillions” of dollars that remain on the sidelines, bitcoin and crypto-backing senator Senator Cynthia Lummis has introduced a bill to Congress she described as “groundbreaking.”
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U.S. president Donald Trump has declared himself the first “crypto president,” helping the bitcoin … More
“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,” Lummis said in a statement.
The bill would see small crypto transactions of less than $300 exempt from taxes, as well as crypto lending, and defer taxes on income generated from crypto mining and staking until the coins are sold.
It would also apply a typical 30-day wash rule to crypto, removing a loophole that has allowed crypto investors to sell at a loss only to buy back in again while still claiming a tax deduction.
Lummis highlighted estimates from the congressional joint committee on taxation that estimated the bill would generate about $600 million through 2034.
“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,” Lummis said.
Lummis had tried to squeeze the crypto tax reforms into U.S. president Donald Trump’s so-called “one, big, beautiful” bill but ran out of time before the Senate sent it to the House.
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The bitcoin price has rocketed higher over the last year, propelled by U.S. president Donald Trump’s … More
Trump’s “one, big, beautiful bill,” designed to overhaul the U.S. tax-and-spend landscape and power the country’s next phase of growth while adding an expected $3 trillion of debt and raising the debt ceiling by $5 trillion, has been passed by the House of Representatives.
House Republicans have meanwhile declared the week beginning July 14 “crypto week,” in which policymakers will focus on three major crypto bills—the stablecoin Genius Act, the market structure Clarity Act and the Anti-CBDC [central bank digital currency] Surveillance State Act.
The Trump administration’s pro-bitcoin and crypto agenda has been named as a catalyst for a bitcoin price break out in coming months.
“We expect bitcoin to print new all-time highs in the second half of the year, buoyed by growing ETF [exchange-traded fund] and corporate treasury flows, as well as U.S. policy and regulatory developments,” Geoff Kendrick, global head of digital assets research at Standard Chartered Bank, said in an emailed note.
Spot bitcoin ETFs, led by the world’s largest asset manager BlackRock, as well as so-called bitcoin treasury companies that have sprung up in the wake of Michael Saylor’s bitcoin-buying giant Strategy, have hoovered up more than $100 billion worth of bitcoin between them in the last few years.
