Trump Administration Considers Crypto Tax Exemption for Small Transactions

• The Trump administration is considering eliminating the capital gains tax on Bitcoin transactions under $600. 

• The House passed major crypto legislation with strong bipartisan support, including the CLARITY Act and GENIUS Act. 

• Several countries like Thailand and Germany already have crypto-friendly tax policies in place.

White House Press Secretary Karoline Leavitt confirmed that the Trump administration is considering a de minimis tax exemption for Bitcoin and crypto transactions under $600. This potential policy change would eliminate capital gains tax reporting requirements for smaller cryptocurrency payments, making digital assets more practical for everyday purchases.

The exemption would allow American crypto users to avoid reporting smaller crypto transactions as taxable for capital gains purposes, such as buying a pizza with Bitcoin. The administration views this as a pathway to streamline cryptocurrency adoption for routine payments without the burden of complex tax compliance.

House Passes Major Crypto Legislation

The U.S. House of Representatives passed the Digital Asset Market Clarity Act (CLARITY Act) in a 294-134 vote, securing strong bipartisan support with 78 Democrats joining Republicans. The bill establishes a regulatory framework for digital commodities, with the Commodity Futures Trading Commission overseeing digital assets that rely on blockchain technology.

Congress also passed the GENIUS Act, the first major crypto legislation ever approved, in a bipartisan 308-122 vote with 206 Republicans and 102 Democrats supporting it. The stablecoin regulation bill now heads to President Trump’s desk for signing.

Senator Cynthia Lummis introduced separate legislation to reform U.S. crypto taxation, proposing a $300 de minimis threshold for transactions and addressing double taxation of staking and mining rewards. The administration’s competing proposal considers a $600 exemption threshold through legislation called the “GENIUS Act.”

Previous attempts to include Bitcoin tax exemptions in Trump’s budget bill were unsuccessful, though industry advocates viewed the exemption as crucial for crypto adoption in everyday payments.

Global Crypto Tax Landscape

Several nations have implemented favorable cryptocurrency tax policies ahead of U.S. action. Thailand exempted crypto transactions from capital gains tax through 2029, while Germany exempts cryptocurrency profits held for over a year. Portugal, Switzerland, and Malta have also enacted crypto-friendly tax frameworks.

The potential U.S. exemption represents a significant shift toward crypto-friendly policies. However, the CLARITY Act faces challenges in the Senate, where lawmakers are drafting their version and seeking significant changes.