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Journalist<\/p>\n
\t\t\t\t\t\t\t\t\t\tPosted: September 25, 2025<\/p>\n
\t\t\t\t\t\t\t\tKey Takeaways\u00a0
\nWhy will Congress discuss crypto tax next month?\u00a0<\/p>\n
To help address lack of clarity and the cost of the current crypto tax regime<\/p>\n
Will it boost crypto adoption?\u00a0<\/p>\n
A clear and retail-friendly tax regime could drive crypto adoption. But there is a lot of balancing act for this to be achieved.\u00a0<\/p>\n
The U.S. Congress appears to be ready to take another shot at addressing the crypto tax, which many industry players have deemed restrictive.\u00a0\u00a0<\/p>\n
On the 1st of October, the U.S. Senate Finance Committee will have a hearing<\/a> on the same with the theme \u2018Examining taxation in digital assets.\u2019<\/p>\n Amongst those invited to the discussion are representatives from the crypto advocacy group, Coin Center, a Coinbase tax executive, and an official from the American Institute of CPAs.<\/p>\n This underscored Congress\u2019s determination to address the current unclear crypto tax regime through a potential policy solution.\u00a0<\/p>\n Sen. Lummis attempt to lower crypto taxes<\/p>\n In July, pro-crypto Senator Cynthia Lummis tried pushing for a tax exemption for transactions below $300 (also known as a de minimis exclusion). <\/p>\n Additionally, she voiced for lower rates for Bitcoin to encourage adoption.\u00a0<\/p>\n Lummis also proposed deferral of tax on mining and staking income until the assets are sold, and an exemption on crypto lending. But the bill has not advanced<\/a> from the introduction stage.\u00a0<\/p>\n Although Lummis tried to slip in part of these proposals (like tax exemption for $200-$300 crypto transfers) into the \u2018Big Beautiful Bill\u2019, it was shot down<\/a> due to revenue concerns.\u00a0<\/p>\n Potential proposals at the hearing<\/p>\n As such, part of the proposals by Lummis could be floated again during the hearing. Besides tax clarity on staking, DeFi yield, derivatives, and lending could feature in the talks.\u00a0<\/p>\n But like the past roadblock, lawmakers will have to balance the impact on government revenue and the adoption incentive.\u00a0<\/p>\n Interestingly, the President Donald Trump administration supports<\/a> a zero tax capital gain on Bitcoin [BTC]<\/a> to make \u2018crypto transactions easy.\u2019<\/p>\n What\u2019s next for U.S. crypto tax?\u00a0<\/p>\n However, the upcoming hearing won\u2019t immediately resolve the sector\u2019s tax challenges. Instead, it aims to build consensus amongst tax experts. <\/p>\n Once that\u2019s achieved, the Senate Committee will consider policy options, either amendments to existing laws or a standalone bill. <\/p>\n However, any legislative path chosen by the Senate must also be approved by the House.<\/p>\n \t\t\t\t\t\t\t\t\t\t\tPrevious: PEPE flashes double buy signals, yet risks remain \u2013 Here\u2019s why<\/a>\t\t\t\t\t\t\t\t\t\t<\/p>\n