(Headline article below) This is how greedy our federal government is to take your money. They can’t put the amount at a decent level because of the loss of capital gains taxes. And with their scam, purposely inflated fiat currency, we don’t get out of our big box store without spending over $300. Fortunately Bitcoin is a very divisible asset, so you don’t have to pay any capital gains unless your total income exceeds a certain amount for the year and you’ve held it for a year. The other reason they don’t want to give you tax relief while using Bitcoin as money, is that only encourages you to use it as money, and you’ll notice that it is superior while gaining value over the long term, even with market manipulation, especially as Square allows merchants to take Bitcoin and Lightning payments while also supporting it with their Cash App. And when this is all said and done, the CLARITY Act will make things worse as the banks and financial megacorps don’t want to give up their revenue streams to better money with lower fees, which they can’t control.
A capital gains rate of 0% applies if your taxable income is less than or equal to:
- $48,350 for single and married filing separately;
- $96,700 for married filing jointly and qualifying surviving spouse; and
- $64,750 for head of household.
A capital gains rate of 15% applies if your taxable income is:
- more than $48,350 but less than or equal to $533,400 for single;
- more than $48,350 but less than or equal to $300,000 for married filing separately;
- more than $96,700 but less than or equal to $600,050 for married filing jointly and qualifying surviving spouse; and
- more than $64,750 but less than or equal to $566,700 for head of household.
However, a capital gains rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.
There are a few other exceptions where capital gains may be taxed at rates greater than 20%:
- The taxable part of a gain from selling section 1202 qualified small business stock is taxed at a maximum 28% rate.
- Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate.
- The portion of any unrecaptured section 1250 gain from selling section 1250 real property is taxed at a maximum 25% rate.
Note: Net short-term capital gains are subject to taxation as ordinary income at graduated tax rates.
https://coinmarketcap.com/academy/article/sen-lummis-pushes-dollar300-crypto-tax-break-in-senate
By Ayesha Aziz
The goal is to let Bitcoin function as an everyday payment method without triggering a taxable event on each use.
Senator Cynthia Lummis is pushing for a small-transaction tax exemption on Bitcoin purchases as the Senate works through a broader digital asset market structure bill. The Wyoming Republican said the House Ways and Means Committee and Senate Finance Committee are both reviewing a proposed $300-per-transaction threshold that would exempt small crypto payments from capital gains tax.
Lummis first introduced the idea as a standalone bill in July 2025. That proposal set the exemption at $300 per transaction, with a $5,000 annual cap. The goal is to let Bitcoin function as an everyday payment method without triggering a taxable event on each use.
She framed the core policy question in a CNBC interview on Wednesday. The issue, she said, is deciding when selling Bitcoin should count as a capital gains event and when it should be treated the same as spending fiat currency. That distinction matters for how widely Bitcoin can be used for routine purchases.
The Senate Banking Committee had scheduled a markup of the broader market structure bill in January. Chairman Tim Scott of South Carolina postponed that meeting without setting a new date. The delay followed Coinbase CEO Brian Armstrong’s statement that his exchange could not support the legislation as currently written, pointing to language around tokenized equities.
The bill in question, the CLARITY Act, passed the House of Representatives in July 2025. It has since stalled in the Senate over several unresolved issues. Disputes remain over the division of responsibilities between U.S. financial regulators, how stablecoin yield should be treated, and concerns about potential conflicts of interest.
Lummis said her Democratic colleagues on the Banking Committee have not yet committed to voting in favor of the bill. She sits on that committee and has been one of the bill’s most active Senate supporters. In December, she announced she would not seek reelection, meaning her term ends in January 2027.
President Donald Trump addressed the standoff last week in a social media post. He urged banking groups to reach a deal with the crypto industry. He also said banks could not hold the CLARITY Act “hostage.” As of Monday, the Senate Banking Committee had not rescheduled the markup session.