US Lawmakers Consider Narrowing De Minimis Crypto Tax Exemption to Stablecoins
US lawmakers are evaluating potential changes to the de minimis crypto tax exemption, which currently exempts small personal crypto transactions from capital gains reporting. The proposed changes would narrow this relief to only stablecoins.
Currently, the de minimis exemption typically involves a $300 per-transaction threshold with an annual cap near $5,000 in tax-free gains. Under existing IRS guidance, cryptocurrency is treated as property, making most purchases taxable unless explicitly exempted.
Senator Cynthia Lummis has proposed a $300 per-transaction exemption with a $5,000 annual cap, including exemptions for charitable donations and mining or staking-related gains. Supporters of Lummis's proposal argue that this exemption would make Bitcoin more practical for everyday use, an objective echoed by Jack Dorsey, who urged lawmakers in October 2025 to lift daily-Bitcoin tax rules.
However, the Bitcoin Policy Institute has cautioned that limiting the exemption to stablecoins alone would be a significant error, as it would exclude routine Bitcoin payments from tax relief. Critics further note that stablecoins are designed to maintain value and often do not generate capital gains, which would reduce the practical benefit of such an exemption if applied solely to them.
Representative Max Miller has indicated that a draft digital asset tax bill has circulated and could advance before the congressional recess in August 2026.
In addition, starting in 2026, the IRS plans to implement new crypto reporting rules, including requiring centralized exchanges to issue 1099-DA forms to improve visibility into crypto transactions.
