On July 15, 2025, Senator Cynthia Lummis introduced a bill proposing a $300 de minimis tax exemption for cryptocurrency transactions, aiming to simplify tax reporting for DeFi users in the United States.
The legislation exempts crypto transactions under $300 from capital gains tax, targeting small-scale DeFi activities like yield farming and liquidity provision. This responds to the complexity of tracking micro-transactions on blockchains like Ethereum.
The bill, supported by the Blockchain Association, aligns with the Clarity Act’s passage on July 17, which clarifies digital asset classifications, easing tax compliance for DeFi protocols. However, critics argue it could increase tax evasion, given the IRS’s estimate that 60–70% of crypto gains go unreported.
The exemption would benefit users of DEXs like SushiSwap, where frequent low-value transactions are common. It also supports stablecoin usage in DeFi, as many transactions fall below $300.
The bill requires Senate approval, facing potential opposition over revenue losses. If passed, it could drive DeFi adoption by reducing tax burdens on retail investors.
The U.S. DeFi market, valued at $5.84 billion in 2024, could see accelerated growth, with institutional investors drawn to simplified tax frameworks. Investors are advised to maintain transaction records using tools like CoinTracker to comply with remaining IRS rules.
This tax exemption could transform DeFi in the United States, making it more accessible and reinforcing its role in financial inclusion and blockchain innovation.
