Today, Senator Lummis unveiled a bill that would enable U.S. citizens to spend up to $300 worth of bitcoin on goods and services, with a yearly cap of $5,000, without having to pay capital gains taxes on the transactions.
The proposed legislation also stipulates that the threshold for spending will be adjusted for inflation starting in 2026.
Such provisions were initially conceptualized as an amendment that Senator Lummis pushed to have included in the One Big Beautiful Bill (OBBB), but wasn’t.
In the wake of Senate Finance Committee Chairman Mike Crapo not putting Senator Lummis’ amendment up for a vote in the marathon amendment session for the OBBB that occurred earlier this week, Senator Lummis said she would continue to work on legislation regarding tax reform around bitcoin spending.
The bill she released this morning was evidence of her remaining true to her word — which should be acknowledged and appreciated.
However, the details around the de minimis exemptions regarding bitcoin spending were met with some justifiable critique.
Trey Walsh, founder of The Progressive Bitcoiner and contributor to Bitcoin Magazine, stated on X that the “thresholds are SO low” and that “there should be NO CAP for goods and services.”
“Make it about spending/payments. This is good for consumers,” Walsh added.
“You’re not taxed on your money (dollars) for spending. You shouldn’t be taxed on your money (bitcoin) for spending either.”
Zach Herbert, founder of Foundation Devices, expressed his discontent with the bill in fewer words:
And Nick Anthony, Policy Analyst at the CATO Institute’s Center for Monetary and Financial Alternatives, proposed an alternative to spending thresholds for purchases:
Personally, I can live with certain spending caps, but I feel they should be substantially larger.
I’d like to see the de minimis exemption applied to transactions valued at up to $600 (the original level Lummis proposed for the amendment to the OBBB) and for the yearly threshold to be closer to $25,000.
Now, certain John Lennon lyrics may come to mind as I put the notion of spending up to $25,000 worth of bitcoin per year without being taxed on it out there into the universe:
“You may say I’m a dreamer…”
But that line warrants finishing when considering that a number of other prominent voices in the Bitcoin space have also spoken up to ask that the provisions in the bill regarding bitcoin spending be more substantial:
“…but I’m not the only one.”
So, if you agree with where we’re coming from, perhaps some of you will join us in politely raising your voices to request that Senator Lummis consider increasing the spending thresholds in the bill — while also expressing your gratitude for Senator Lummis’ dedication to crafting and advancing legislation that treats bitcoin as a medium of exchange.
This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.