U.S. Senator Cynthia Lummis (R-WY) has reiterated her call for a de minimis tax exemption on everyday cryptocurrency transactions of up to $300.
Lawmakers are trying to address the tax exemption proposal so that Americans can use cryptocurrencies like Bitcoin (BTC) as a medium of exchange, Lummis said during an interview with CNBC on March 4.
Related: Bitcoin could halve U.S. debt in 20 years, says Senator Cynthia Lummis
De minimis crypto tax exemption
It was in July last year that the Wyoming senator introduced digital asset tax legislation that seeks to create a new Section 139J to provide a de minimis exemption for crypto gains taxes on crypto transactions of up to $300.
The bill includes the $300 threshold with an annual total cap of $5,000. The exemption doesn’t apply to these transactions:
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Exchanging crypto into cash or stablecoins
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Property used in active trade or business
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Property held for income production
It is nearly impossible to track every crypto transaction, such as buying coffee with Bitcoin, complicating tax compliance for ordinary users. The $300 threshold strikes a reasonable balance between tax compliance and practical usability of crypto assets as a medium of exchange, the bill argues.
During the interview, Lummis said the real challenge is to foster an environment where Bitcoin becomes a means of exchange.
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Clarity Act in progress
Regarding the Clarity Act, Lummis said the Republican members of the Banking Committee have been negotiating with the Democrat members since September and will keep working toward landing the legislation on President Donald Trump’s desk.
The Clarity Act seeks to distinguish the jurisdictions of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding the regulation of crypto assets.
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Lummis hails Kraken securing Fed master account
Lummis hailed Kraken Financial, the Wyoming-chartered banking arm of the Kraken crypto exchange, securing the Federal Reserve Bank of Kansas City’s master account access.
A master account is held at one of the twelve regional Federal Reserve banks that enables regulated depository institutions to maintain account balances at the Fed. Through the master account, Kraken Financial can connect directly to core U.S. payment rails, including Fedwire, without relying on intermediary banks.
Lummis said Kraken’s announcement adds another opportunity for the integration of the fiat money with digital assets. She added she was very happy to see the Fed “finally realize” that it could integrate crypto financial products in a way that “benefits Americans.”
“This is a huge step forward.”
Kraken used a Wyoming law called the Special Purpose Depository Institution (SPDI) to form a banking arm, Lummis explained. Wyoming has a very comprehensive and clear examination for the safety of these companies, but under the Joe Biden administration, the Fed wouldn’t allow digital asset companies to access its payment window, she added.
In the future, banks could serve customers in both fiat currencies like the U.S. dollar and digital currencies like Bitcoin, Lummis claimed.
Lummis supports Trump’s war on Iran
The United States has been in a “forever war” with Iran since the late 1970s, and the world is now watching the beginning of the end, Lummis said.
She thanked Trump for taking the decisive action and attacking Iran.
Related: JPMorgan and BofA backed group slams Fed’s latest approval
This story was originally published by TheStreet on Mar 5, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.