Senator Cynthia Lummis, R-Wyo. Senator Cynthia Lummis (R-Wyo.) Bitcoin taxationIncludes a “de minimis” exemption for minor transactions, and provides guidance on capital gain calculations.
Lummis is one of several lawmakers that pressed Bessent on the issue of digital assets, and clear U.S. regulations.
Bessent spoke to the Senate Banking, Housing and Urban Affairs Committee regarding the Financial Stability Oversight Council’s annual report report — essentially a high‑profile Senate hearing on U.S. financial stability where he is being questioned on economic policy and oversight issues.
Mark Warner said that at times the hearings had been heated. “I feel like I’m in crypto hell.”
Senator Lummis’ crypto-focused questioning
Lummis opened the discussion by questioning whether China was using digital assets and Blockchain to compete with American leadership in financial services.
Bessent clarified that the answer is still unclear. While there are reports of Chinese digital asset rumor that could be backed up by gold or another mechanism, U.S. Treasury have not observed any such instruments.
He acknowledged China’s exploration of frameworks for digital assets, especially through Hong Kong’s Financial Sandbox and Hong Kong Monetary Authority.
The discussion quickly moved to U.S. regulatory issues. Lummis stressed that there must be clear rules, including legislation on stablecoins.
“It’s impossible to proceed without it,” Bessent said.
He expressed his support for the proposal Clarity ActWhich seeks to provide regulatory clarity for digital assetsEncourage industry players who are against regulation to relocate to countries that have a more relaxed regulatory regime.
“We have to get this Clarity Act across the finish line,” Bessent said. “Any market participants who don’t support it should move to El Salvador.”
The two officials emphasized the importance of embedding digital assets within the U.S. economic system.
Bessent said that the balance is between innovation and maintenance. “safe, sound, and smart practices” under U.S. government oversight. He noted that ongoing efforts are being made to engage community Small banks and digital assets ecosystem acknowledges concerns about new legislation that could cause deposit outflows.
“Deposit volatility is very undesirable because it is the stability of those deposits that allows them to lend into their communities,” Bessent said.
There will be an exemption from tax on Bitcoin?
Lummis also raised questions about digital asset taxation, particularly the treatment of small transactions — known as de minimis — and the calculation of capital gains for users with mixed portfolios of Bitcoin purchased at different prices over time.
Bessent admitted the complexity of this issue, and offered that Lummis’ team work closely with the Treasury Office of Tax Policy to offer guidance. A bitcoin tax exclusion was not discussed definitively, but was brought up between both lawmakers.
Treasury Secretary Scott Bessent informed lawmakers on Tuesday that the U.S. has no authority You can either bail out Bitcoin or tell banks to keep crypto.
Bessent stressed during his testimony before the House Financial Services Committee that BTC cannot be funded by taxpayers and the only way the government can get involved is through law enforcement seizure.
The value of seized bitcoins has increased from $500 million to $15 billion. He stressed that this is not an active investment.
Bessent has also stated that the U.S. government will not stop. selling According to Executive Order 14233, bitcoins seized will be added to the Strategic Bitcoin Reserve.
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Source: bitcoinmagazine.com
