A new crypto-friendly tax bill is making waves in the U.S. Senate aiming to ease burdens on digital asset users. Senator Cynthia Lummis introduced legislation that would exempt crypto transactions under $300 from capital gains tax reporting with an annual cap of $5,000. This move is designed to simplify small everyday transactions for Americans using digital currencies.

The bill also seeks to stop double taxation on crypto rewards from staking mining airdrops and forks. Taxes would apply only when these rewards are eventually sold. The proposal covers other key areas including crypto lending wash sales charitable donations and lets traders and dealers mark assets at current market value for accounting purposes.

Lummis said the legislation is needed so Americans can engage in the digital economy without fear of accidental tax violations. The bill faces an uphill battle in the Senate as other crypto regulatory bills and efforts like creating a federal bitcoin reserve compete for attention. The push highlights growing momentum for crypto innovation in the U.S.