Senator Lummis’ New Bill Enables Tax-Exempt Bitcoin Spending — But Thresholds Are Too Low

Bitcoin MagazineSenator Lummis’ New Bill Enables Tax-Exempt Bitcoin Spending — But Thresholds Are Too Low Long-time Bitcoin advocate Senator Cynthia Lummis (R-WY) has drafted a bill that allows Bitcoin enthusiasts to spend small amounts of bitcoin without incurring capital gains taxes (which is very cool), but many — including myself — feel that the spending limits in the bill are too low. This post Senator Lummis’ New Bill Enables Tax-Exempt Bitcoin Spending — But Thresholds Are Too Low first appeared on Bitcoin Magazine and is written by Frank Corva.

Jul 7, 2025 - 03:10

Bitcoin Magazine

Senator Lummis’ New Bill Enables Tax-Exempt Bitcoin Spending — But Thresholds Are Too Low

Senator Lummis’ New Bill Enables Tax-Exempt Bitcoin Spending — But Thresholds Are Too Low 6

Today, Senator Lummis unveiled a bill that would enable U.S. citizens to spend up to $300 worth of bitcoin on goods and services, with a yearly cap of $5,000, without having to pay capital gains taxes on the transactions.

The proposed legislation also stipulates that the threshold for spending will be adjusted for inflation starting in 2026.

Such provisions were initially conceptualized as an amendment that Senator Lummis pushed to have included in the One Big Beautiful Bill (OBBB), but wasn’t.

In the wake of Senate Finance Committee Chairman Mike Crapo not putting Senator Lummis’ amendment up for a vote in the marathon amendment session for the OBBB that occurred earlier this week, Senator Lummis said she would continue to work on legislation regarding tax reform around bitcoin spending.

The bill she released this morning was evidence of her remaining true to her word — which should be acknowledged and appreciated.

However, the details around the de minimis exemptions regarding bitcoin spending were met with some justifiable critique.

Trey Walsh, founder of The Progressive Bitcoiner and contributor to Bitcoin Magazine, stated on X that the “thresholds are SO low” and that “there should be NO CAP for goods and services.”

“Make it about spending/payments. This is good for consumers,” Walsh added.

“You’re not taxed on your money (dollars) for spending. You shouldn’t be taxed on your money (bitcoin) for spending either.”

Zach Herbert, founder of Foundation Devices, expressed his discontent with the bill in fewer words: