US Lawmakers Eye Bitcoin Payments Without Capital Gains Tax

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Sen. Cynthia Lummis said US lawmakers are actively exploring how Bitcoin can be used for everyday payments without automatically triggering capital gains tax, framing the issue as a key obstacle to treating the asset as a true medium of exchange.

Speaking on CNBC’s Squawk Box on March 5, the Wyoming Republican said discussions are underway in both the House and Senate around a potential de minimis exemption, with the figure currently being considered landing “right around $300.”

Congress Eyes Tax-Free Bitcoin Payments

Lummis described that threshold as only part of the broader tax problem. The bigger question, she suggested, is not simply where to set a small-transaction exemption, but how Congress should distinguish between a disposal of Bitcoin as an investment asset and the use of Bitcoin as money.

“It’s called the de minimis exemption. And the number that is being looked at by House Ways and Means and Senate Finance is right around $300 as a de minimis exemption,” Lummis said, and added:

“But the challenge is trying to figure out how you can use Bitcoin as a means of exchange without paying a capital gains tax on it. So we’re trying to figure out how to weigh the appropriate way to decide when a sale of, for example, a Bitcoin should be subject to capital gains and when it should be allowed to be used as a simple means of exchange. The same way we use the US dollar.”

That distinction matters. Under the current framework, spending appreciated Bitcoin can create a taxable event, even when the transaction looks economically similar to an ordinary purchase made in dollars. For crypto advocates, that has long been one of the main reasons Bitcoin has struggled to function cleanly as a payments rail in the US, despite its growing acceptance as a store of value and institutional asset.

The exchange on CNBC made clear that Lummis sees the issue less as a niche crypto tax tweak and more as a structural inconsistency in how digital assets are treated. When host Joe Kernen joked that, by similar logic, consumers should be able to claim capital losses as the dollar steadily loses purchasing power, Lummis agreed and leaned into the comparison.

“It’s right because it’s by design the US dollar loses value at 2% or more every year,” she said. “So you’re right. If we did the same thing with the US dollar, all taxpayers would be getting a capital loss annually.”
However, Lummis did not outline a final legislative path, and she did not claim consensus has been reached.

At press time, Bitcoin traded at $70,786.

Featured image created with DALL.E, chart from TradingView.com

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