US Senator Cynthia Lummis submitted a draft bill on Thursday proposing to exempt certain crypto transactions from taxation and defer taxes on mining and staking rewards until the underlying tokens are sold.
“My legislation ensures Americans can participate in the digital economy without inadvertent tax violations,” Lummis stated.
This proposed legislation comes three weeks after the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act passed the Senate in a 68-30 vote on June 11.
According to Andrei Grachev, managing partner at DWF Labs and Falcon Finance, the GENIUS Act may “legitimize” stablecoins by setting clear collateralization standards.
Aave Labs founder Stani Kulechov believes increasing US regulatory clarity may draw traditional finance players to decentralized financial services due to dissatisfaction with traditional banking services.
US Senator Cynthia Lummis Drafts Standalone Crypto Tax Bill
US Senator Cynthia Lummis submitted a draft bill Thursday, outlining provisions to exempt certain digital asset transactions from taxation.
The bill proposes a de minimis exemption for digital asset transactions and capital gains of $300 or less, with a $5,000 annual exemption cap.
Additionally, the bill exempts crypto lending agreements and digital assets used in charitable contributions from taxation, and proposes to defer taxes on mining and staking rewards until the underlying assets are sold.
Lummis said: “This groundbreaking legislation is fully paid for, cuts through bureaucratic red tape, and establishes common-sense rules… We cannot allow our archaic tax policies to stifle American innovation.”
“My legislation ensures Americans can participate in the digital economy without inadvertent tax violations,” she added.
The standalone draft bill represents Lummis’s best chance of passing the pro-crypto legislation following its exclusion from recent spending legislation.
$250 Million Ondo Catalyst Fund Signals “Arms Race” for RWA Tokenization
DeFi protocol Ondo Finance and venture firm Pantera Capital plan to invest $250 million in real-world assets (RWAs) through a new fund called Ondo Catalyst, Axios reported.
Ondo’s chief strategy officer, Ian De Bode, said the fund will acquire equity stakes and tokens in emerging RWA projects.
De Bode described the tokenization market as experiencing a “bit of an arms race,” with exchanges particularly focusing on tokenized securities.
PancakeSwap Doubles Quarterly Trading Volume to $530 Billion
PancakeSwap reported a record-breaking $325 billion in trading volume for June, more than doubling its previous monthly high and second-quarter trading volume to $530 billion.
The surge follows the rollout of PancakeSwap Infinity earlier this year, introducing features like lower gas fees, customizable liquidity pools, and advanced pool types.
FATF’s Crypto Checklist Hints at Next Regulatory Crackdown
Cryptocurrency regulations are increasingly aligning with global Financial Action Task Force (FATF) standards, as 73% of eligible jurisdictions have now passed laws implementing the Travel Rule.
The FATF, in its recent annual report, highlighted stablecoins and decentralized finance (DeFi) as key areas for further regulatory guidance in the coming year, noting rising concerns over illicit finance.
Crypto Losses Hit $2.5 Billion in First Half of 2025, But Hacks Fall in Q2: CertiK
Blockchain security firm CertiK reported $2.47 billion in losses from crypto hacks, exploits, and scams during the first half of 2025, though the number and value of incidents decreased significantly in Q2.
Despite the overall slight increase in losses compared to 2024 (nearly 3%), CertiK noted this spike is largely attributable to two major incidents involving crypto exchange Bybit and protocol Cetus.
DeFi Market Overview
Data compiled by Cointelegraph shows several of the 100 largest cryptocurrencies by market capitalization achieved significant gains over the past week or month. Pudgy Penguins (PENGU) led weekly gains with over a 66% increase.
