Senator Lummis’ New Bill Sparks Debate Over Bitcoin Spending Limits
Senator Lummis recently introduced a bill that would allow U.S. citizens to spend up to $300 worth of bitcoin on goods and services annually without incurring capital gains taxes. The bill also includes a yearly cap of $5,000, with adjustments for inflation starting in 2026. These provisions were initially proposed as an amendment to the One Big Beautiful Bill (OBBB), which was not included in the final version.
Despite Senator Lummis’ efforts to promote tax reform around bitcoin spending, some critics have raised concerns about the low thresholds set in the bill. Trey Walsh, founder of The Progressive Bitcoiner, highlighted that the thresholds are too low and suggested that there should be no cap for goods and services spending. He emphasized the importance of treating bitcoin as a medium of exchange without imposing additional taxes.
Zach Herbert, founder of Foundation Devices, echoed the sentiment, describing the bill as “weak.” Nick Anthony, a Policy Analyst at the CATO Institute, proposed eliminating the transaction and annual spending caps while maintaining the focus on qualifying purchases for goods and services.
While some may find the proposed spending caps acceptable, others, including myself, believe that they should be significantly higher. Personally, I advocate for raising the de minimis exemption to transactions valued at $600 and increasing the yearly threshold to $25,000.
In the spirit of John Lennon’s lyrics, “You may say I’m a dreamer, but I’m not the only one,” several voices in the Bitcoin community have called for more substantial provisions in the bill regarding bitcoin spending. It is important to respectfully voice our opinions and request that Senator Lummis consider revising the spending thresholds while acknowledging her dedication to advancing legislation that recognizes bitcoin as a legitimate form of payment.
In conclusion, while the debate over the bill’s provisions continues, it is essential to engage in constructive dialogue and advocate for policies that support the growth and adoption of bitcoin as a means of exchange. Let us work together to shape legislation that reflects the evolving landscape of digital currencies and fosters a more inclusive financial system.