Increasing US regulatory clarity is enabling more traditional finance participants to seek out decentralized financial solutions.
US Senator Cynthia Lummis submitted a draft bill on Thursday proposing to exempt certain crypto transactions from taxation and defer taxes on mining and staking rewards until the underlying tokens are sold.
“My legislation ensures Americans can participate in the digital economy without inadvertent tax violations,” said Lummis.
The senator’s draft bill was published three weeks after the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, passed the Senate in a 68–30 vote on June 11, Cointelegraph reported.
The GENIUS Act may “legitimize” stablecoins for institutional participants by setting clear collateralization standards, cementing them as a “better form of money,” said Andrei Grachev, managing partner at DWF Labs and Falcon Finance.
The increasing US regulatory clarity may enable more traditional finance players to seek out decentralized financial services, due to their disappointment with traditional banking services, according to Aave Labs founder Stani Kulechov.
“Thanks to horrible banking experiences, we’ve seen a lot of finance coming into fintech, and fintech applications able to capture a lot of market share,” Kulechov said onstage at EthCC 2025.
Beyond decentralized finance (DeFi), the tokenization of real-world assets is a “multi-trillion-dollar opportunity” for the crypto sector to engage with traditional finance, added Kulechov.
In the wider crypto space, Chainlink, a decentralized blockchain oracle network for crosschain communication, launched a new compliance framework aimed at unlocking over $100 trillion worth of institutional capital for the crypto market.
“Chainlink ACE is the compliance and identity standard the tokenized asset economy has been waiting for, with today’s launch providing a final critical building block for over $100 trillion in institutional capital to move onchain,” said Sergey Nazarov, the co-founder of Chainlink.
US Senator Cynthia Lummis drafts standalone crypto tax bill
US Senator Cynthia Lummis submitted a draft bill on Thursday, outlining several provisions to overhaul the tax code and exempt certain digital asset transactions from taxation after crypto amendments failed to appear in the budget package.
The bill proposes a de minimis exemption for digital asset transactions and capital gains of $300 or less, with a $5,000 annual exemption cap.
The Wyoming Senator also outlined provisions to exempt crypto lending agreements and digital assets used in charitable contributions from taxation. Additionally, the bill proposed deferring taxes on mining and staking rewards until the underlying assets are sold. Lummis said:
“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. We cannot allow our archaic tax policies to stifle American innovation.
“My legislation ensures Americans can participate in the digital economy without inadvertent tax violations,” she added.
The standalone draft bill is now the Wyoming senator’s best chance of passing the pro-crypto legislation promised to the crypto community after the Senator passed the spending bill without addressing digital assets.
Source: https://cointelegraph.com/
