U.S. Senator Cynthia Lummis (R-WY), a prominent Bitcoin advocate, is actively working to introduce a de minimis tax exemption that would eliminate capital gains taxes and reporting requirements on small Bitcoin transactions.
This effort aims to make everyday BTC spending—such as buying coffee or small purchases—practical by removing the IRS’s current treatment of crypto as property, which triggers taxable events for even minor sales or uses.
Transactions under $300 would be exempt, with an annual cap of $5,000 in total tax-free spending. This builds on her earlier pushes for a $600 threshold in 2022 and a $300 amendment in mid-2025.
The bill also addresses double taxation on mining/staking rewards taxed only upon sale, crypto lending, wash sales, and charitable contributions to create parity with traditional assets.
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Lummis introduced standalone digital asset tax legislation in July 2025 after a budget bill omitted crypto provisions. On October 7, 2025, she reiterated the push live on Fox TV, urging removal of capital gains taxes on small BTC payments to boost adoption. She followed up on October 9, 2025, announcing she’s drafting the bill and calling for public support.
The proposal has garnered strong support from the Bitcoin community for reducing compliance burdens and encouraging retail use, but critics argue it favors Bitcoin over altcoins like Litecoin or Dogecoin, potentially fragmenting the broader crypto market.
Lummis has tied this to her larger vision, including funding for a U.S. Strategic Bitcoin Reserve, which she said could begin imminently. This aligns with her long-standing pro-crypto stance, including personal BTC investments and prior bills like the 2022 Lummis-Gillibrand Responsible Financial Innovation Act.
If passed, it could significantly lower barriers to BTC as a medium of exchange, though implementation would require IRS guidance and further congressional votes.
Eliminating capital gains taxes on small BTC transactions would make it more practical to use Bitcoin for everyday purchases, as users wouldn’t need to track and report minor taxable events. This could drive mainstream adoption as a medium of exchange, not just a store of value.
Currently, every BTC transaction triggers a taxable event, requiring users to calculate gains or losses. The exemption would simplify tax reporting, especially for casual users, lowering barriers to entry and encouraging broader retail use.
Merchants accepting Bitcoin could see increased demand, as tax-free small transactions make crypto payments more appealing. This could spur growth in BTC-compatible payment systems and point-of-sale infrastructure.
The proposal could set a model for treating cryptocurrencies like traditional currencies for small transactions, aligning tax policy with practical use cases. It may prompt further reforms to address other crypto tax complexities.
Implementing the exemption requires clear IRS guidance on tracking the $5,000 annual cap and distinguishing exempt transactions. This could strain IRS resources or lead to enforcement gaps if not clearly defined.
Lummis’s push, tied to her Strategic Bitcoin Reserve advocacy, signals growing congressional support for pro-crypto policies, especially under a potentially crypto-friendly administration. However, passage depends on bipartisan support and navigating a crowded legislative agenda.
The proposal’s emphasis on Bitcoin has sparked debate. Supporters argue it strengthens BTC’s dominance, but critics, including some altcoin advocates, warn it could marginalize other cryptocurrencies fragmenting the market and favoring a single asset.
A clear tax exemption could boost investor and consumer confidence in Bitcoin, potentially increasing its price and market stability. However, if the bill fails or faces delays, it could dampen enthusiasm in the crypto community.
Some argue the bill unfairly prioritizes Bitcoin, potentially alienating altcoin communities. This could deepen divides within the crypto space, impacting collaborative efforts on broader regulatory clarity.
Despite Lummis’s advocacy, the bill faces a tough path through Congress, especially if tied to contentious issues like the Strategic Bitcoin Reserve. Opposition from anti-crypto lawmakers or those prioritizing altcoin neutrality could stall progress.
Critics may argue the exemption reduces federal tax revenue, though the impact is likely minimal given the focus on small transactions. This could still spark debate in budget-conscious congressional discussions.
If passed, the exemption could position Bitcoin as a viable everyday currency, aligning with Lummis’s vision of integrating crypto into the U.S. financial system. It may also pave the way for similar exemptions for other digital assets, though the current Bitcoin focus could complicate broader crypto tax reform.
North Dakota to Launch “Roughrider” Stablecoin, A State-Backed Digital Dollar Initiative
North Dakota has announced plans to launch a USD-backed stablecoin called the “Roughrider Coin.” This marks a significant step for the state in embracing blockchain technology for financial services, positioning it as the second U.S. state to issue a government-backed stablecoin after Wyoming’s Frontier Stable Token (FRNT).
The announcement was made on October 8, 2025, by the Bank of North Dakota (BND) in partnership with fintech giant Fiserv, and it’s generating buzz across crypto and finance communities on X.
The stablecoin is fully backed 1:1 by U.S. dollars, ensuring stability and pegged value. It will be issued on Fiserv’s FIUSD digital asset platform, which leverages blockchain infrastructure from Paxos Trust Co. for secure, interoperable operations with other stablecoins.
A beta version is under development, with the first tests in North Dakota banks and credit unions scheduled for 2026. Initial rollout will focus on institutional use, not direct consumer access. Accelerating bank-to-bank transactions reducing settlement times from days to minutes.
Supporting loan disbursements, overnight lending, and cross-border payments. Potential future expansion to merchant adoption and global money movement.
“Roughrider” honors Theodore Roosevelt’s volunteer cavalry unit from the Spanish-American War, reflecting North Dakota’s history—Roosevelt ranching in the state’s Badlands helped shape his conservation ethos.
This ties into the state’s innovative spirit, especially with the upcoming Theodore Roosevelt Presidential Library opening in Medora in 2026. The project aligns with the federal GENIUS Act passed in July 2025, which provides a national framework for payment stablecoins, enabling faster and more secure global transactions.
The North Dakota Industrial Commission including Governor Kelly Armstrong, Attorney General Drew Wrigley, and Agriculture Commissioner Doug Goehring has approved BND’s development efforts. BND, the only state-owned bank in the U.S. established in 1919, is collaborating with Fiserv, a payments processor handling billions of transactions annually.
BND President and CEO Don Morgan emphasized that this evolves the bank’s 106-year mission to support local agriculture, commerce, and industry without disrupting customer experiences—most changes will occur “behind the scenes.”
Fiserv COO Takis Georgakopoulos highlighted the shift to “instant, interoperable, and borderless” payments. Governor Kelly Armstrong described it as a “cutting-edge approach to creating a secure and efficient financial ecosystem,” capitalizing on federal law changes to keep North Dakota’s financial sector resilient.
Rick Clayburgh of the North Dakota Bankers Association noted it could offer “great opportunities” for local institutions navigating fintech. This initiative underscores a growing trend of U.S. states experimenting with digital currencies to enhance efficiency and compete with private stablecoins like USDT or USDC.
Unlike volatile cryptocurrencies, Roughrider aims for the speed of blockchain with the reliability of fiat backing. Early X discussions highlight excitement about state-level adoption like potential Solana integration for rails and comparisons to Wyoming’s FRNT, which launched on multiple blockchains in August 2025.
Some users speculate on future consumer access, while others flag regulatory hurdles or bank deposit risks.No initial investment costs for BND in the pilot, and public investment isn’t planned yet—focus is on institutional viability first.
This could signal more states following suit, blending traditional banking with Web3. What aspect intrigues you most— the tech, history, or potential impact?