6 Crypto Tax Proposals You Need to Know 2025 (Senator Lummis Drops Digital Asset Tax Fairness Act)

Senator Cynthia Lummis just dropped a major crypto tax proposal, which could shake up how the IRS handles staking, lending, tax loss harvesting, and small DeFi transactions.

The Digital Asset Tax Fairness Act isn’t law yet, but if passed, it would introduce 6 new rules that every crypto investor needs to understand.

Clinton from DROPS breaks down what’s smart in the bill… and what makes zero sense.

Key Proposals Covered in This Video:
• How staking & mining rewards would be taxed only when sold
• The end of appraisal headaches for crypto donations
• A win for active traders with mark-to-market options
• Why crypto lending might finally be tax-exempt
• The return of the dreaded wash sale rule
• The de minimis rule that sounds good—but still makes you track everything

Clinton also shares smarter ideas that Congress should consider—like removing capital gains tax from crypto entirely.

Whether you're staking on DeFi platforms, donating crypto, or trading daily, this proposal affects you.

📬 Need help filing your crypto taxes or responding to an IRS letter?
👉 Visit https://www.CryptoTaxAudit.com for expert help with tax strategy, gain calculations, and audit defense.

💬 What do you think of the wash sale rule for crypto? Should Congress ditch it for everyone? Drop your thoughts below ⬇

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⏱️ Timestamps:
00:00 – Intro
00:36 – Overview of six new crypto tax proposals in the bill
01:00 – Proposal 1: Staking and mining taxed only when sold
01:24 – Proposal 2: No appraisal needed for crypto donations
01:36 – Proposal 3: Mark-to-market accounting for active crypto traders
01:45 – Proposal 4: Crypto lending clarified as non-taxable
02:00 – Proposal 5: Wash sale rule extended to cryptocurrency
02:44 – Why the wash sale rule is considered harmful to crypto investors
03:36 – How stock traders bypass the wash sale rule legally
04:08 – Proposal 6: The $300 de minimis exemption explained
04:36 – Why the de minimis rule still burdens crypto users
05:00 – Clinton’s take: smarter options for taxing digital assets
05:36 – Suggested reforms: long-term gains treatment or full exemption
05:48 – Final thoughts and call to action for crypto investors

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