“Working on It”: Senator Lummis Backs Jack Dorsey’s Push for a Bitcoin Tax Exemption

￰4￱ Cynthia Lummis (R-WY) is developing legislation to exempt small Bitcoin transactions from capital gains taxes, a move inspired by Jack Dorsey’s call to make Bitcoin usable for everyday ￰5￱ proposal seeks to remove the tax burden on minor crypto purchases, such as buying coffee or groceries, which currently trigger taxable events under Internal Revenue Service (IRS) rules. Lummis’s upcoming bill introduces a “de minimis” exemption that would exclude crypto transactions under $300 from capital gains reporting, with an annual cap of $5,000 per ￰6￱ Revives Effort to Exempt Small Bitcoin Transactions From Capital Gains Tax The initiative builds on her earlier Digital Asset Tax Fairness Act and follows a series of unsuccessful attempts to pass similar measures earlier this year during negotiations over President Donald Trump’s reconciliation ￰7￱ effort gained new attention this week after Dorsey, founder of Block and a vocal Bitcoin advocate, urged lawmakers to create a tax exemption for small crypto payments.

“We need a de minimis tax exemption for everyday Bitcoin transactions,” Dorsey wrote on X, coinciding with his company’s rollout of Bitcoin payments and a new crypto wallet for small businesses using its Square ￰8￱ need a de minimis tax exemption for everyday bitcoin transactions ￰0￱ — jack (@jack) October 8, 2025 Lummis responded directly to Dorsey’s post, confirming that she is “working on it” and encouraging Americans to contact their congressional representatives to support the ￰9￱ on ￰10￱ this is of interest to you, please tell your Senators/House member! ￰1￱ — Cynthia Lummis (@CynthiaMLummis) October 9, 2025 The exchange reignited discussion around the practical use of Bitcoin in commerce and the obstacles posed by current tax ￰11￱ existing IRS regulations, cryptocurrencies are treated as property, meaning every transaction involving a digital asset, no matter how small, requires the calculation and reporting of capital gains or ￰12￱ has long been cited as one of the biggest barriers preventing Bitcoin from functioning as a medium of exchange rather than a speculative ￰13￱ proposed legislation would aim to change that by exempting small payments from taxation, effectively aligning Bitcoin transactions with how fiat currency payments are ￰14￱ argue this adjustment could simplify compliance for consumers and merchants, making it easier for digital assets to circulate in the real ￰15￱ debate over Lummis’s proposal has drawn mixed reactions within the crypto ￰16￱ view it as a practical step toward broader adoption, praising the senator for her continued support of Bitcoin-related policy, including her previous push to establish a Strategic Bitcoin ￰17￱ believe the exemption could transform Bitcoin into a more functional currency for everyday use.

Critics, however, argue the initiative focuses too narrowly on Bitcoin, excluding other cryptocurrencies like Litecoin, Dash, and Dogecoin, which are also used for ￰18￱ question whether such tax changes should prioritize one digital asset over a broader framework for all crypto ￰19￱ has pledged to continue refining the proposal and reintroduce it in upcoming Senate ￰20￱ Hints at Imminent Funding for ￰21￱ Bitcoin Reserve ￰22￱ Cynthia Lummis says the federal government could soon begin funding the proposed Strategic Bitcoin Reserve (SBR), even as legislative negotiations continue in ￰23￱ a post on X, Lummis credited President Trump for clearing the way for initial fund acquisition, calling it a major step toward recognizing Bitcoin as a national strategic ￰24￱ remarks followed renewed discussion around the SBR, which would be capitalized using Bitcoin already held by the ￰25￱ from criminal and civil ￰26￱ reserves could be acquired through budget-neutral strategies, ensuring no added cost to taxpayers.

Analysts, including Galaxy Digital’s Alex Thorn, believe the initiative could be formalized before the end of ￰27￱ Cynthia Lummis is looking to have digital asset market structure legislation completed before the end of 2025. #CynthiaLummis #cryptolegislation ￰2￱ — ￰28￱ (@cryptonews) August 21, 2025 Lummis has also been pushing to advance digital asset market structure legislation before ￰29￱ at the SALT Wyoming Blockchain Symposium in August, she said she expects the bill to reach the president’s desk by ￰30￱ proposed framework seeks to clarify the classification of digital assets as securities or commodities and strengthen consumer ￰31￱ Lummis and Moreno are urging the US Treasury to tackle an unintended tax burden on digital assets, which could harm American crypto firms. #CryptoTax #Treasury ￰3￱ — ￰32￱ (@cryptonews) May 14, 2025 In May, Lummis and Senator Bernie Moreno urged the Treasury to address the corporate alternative minimum tax (CAMT), warning it could penalize companies holding digital assets by taxing unrealized ￰33￱ senators called for an adjustment excluding such holdings from taxable income, arguing the current rule risks stifling ￰34￱ and competitiveness in the global digital asset industry.

Together, the initiatives underscore Lummis’s role in shaping the nation’s evolving crypto policy agenda.