Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Senate Crypto Tax Hearing: Balancing Regulation and Innovation at a Pivotal Moment

Senate Crypto Tax Hearing: Balancing Regulation and Innovation at a Pivotal Moment

Bitget-RWA2025/09/26 03:34
By:Coin World

- U.S. Senate Finance Committee will hold a key hearing on October 1, 2025, to address digital asset taxation under Senator Mike Crapo’s leadership. - Testifiers including Coinbase’s Lawrence Zlatkin and Coin Center’s Jason Somensatto will advocate for exemptions on small crypto transactions and clearer property classification. - Legislative proposals like Senator Lummis’ $300 de minimis exemption bill could resurface, balancing investor relief against IRS enforcement challenges. - Market turbulence, inclu

Senate Crypto Tax Hearing: Balancing Regulation and Innovation at a Pivotal Moment image 0

The U.S. Senate Finance Committee is set to hold a significant hearing on October 1, 2025, focusing on how digital assets are taxed. Titled “Examining the Taxation of Digital Assets,” the session will be led by Senator Mike Crapo (R-Idaho) and will gather testimony from prominent figures in the crypto sector. The committee intends to address the challenges of fitting current tax regulations to digital assets—a matter that has become increasingly urgent due to market volatility and demands for clearer rules.

Testimonies will be provided by Lawrence Zlatkin, who serves as Vice President of Tax at

, Jason Somensatto, Policy Director at Coin Center, Andrea S. Kramer, a founding member of ASKramer Law, and Annette Nellen, who chairs the Digital Assets Tax Task Force at the American Institute of CPAs. These experts are likely to support a balanced regulatory approach, advocating for small transaction exemptions and more precise definitions that treat cryptocurrencies as property rather than securities. For example, Somensatto and Zlatkin may oppose the idea that every crypto transaction, such as buying a $5 coffee, should be considered taxable—a perspective that has faced pushback from some regulators.

The hearing will also touch on current legislative initiatives. Senator Cynthia Lummis (R-Wyoming) has previously put forward a bill suggesting a de minimis exemption for transactions below $300 and lower tax rates on

payments. Although this bill did not advance, the committee’s ongoing discussions could bring similar measures back into consideration. The outcome is crucial: tighter tax reporting could discourage everyday users, while exemptions might ease participation but complicate enforcement. The committee’s decisions could determine whether the IRS receives expanded authority to track crypto transactions or if the industry faces sweeping regulatory changes.

This hearing comes at a time of heightened instability in the crypto market. In late September 2025, Ethereum’s value fell below $4,000, wiping out $22 billion in market capitalization and leading to $498 million in liquidations. This downturn has intensified political attention, with lawmakers possibly using the situation to justify stricter regulation. The Senate’s review may speed up efforts to clarify whether crypto profits are taxed at the moment of transaction or only when gains are realized—a distinction that has left many investors uncertain.

These discussions are taking place against the backdrop of the Trump administration’s efforts to bring more regulatory clarity, though delays in budget approvals could push back the hearing date. Should the hearing move forward, it is expected to shape the future of digital asset taxation, which currently treats crypto as property under IRS rules. However, ongoing disagreements about whether crypto should be classified as property, securities, or a new asset class continue to pose challenges.

The results of this hearing could have significant consequences. More stringent reporting rules might dampen trading activity and slow adoption, while exemptions could give the industry some relief. Observers point out that the IRS’s growing emphasis on crypto compliance, including enhanced tracking capabilities, may have a greater impact than short-term market swings. The October 1 hearing marks a pivotal moment in deciding whether the U.S. will encourage digital asset innovation or implement regulations that could hinder growth.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

AlphaTON Connects Conventional Finance with Blockchain through Telegram’s Platform

- AlphaTON Capital Corp. raised $71M via shares and loans to buy $30M in TON tokens, expanding its reserves to $100M by Q4 2025. - The firm leverages Telegram's ecosystem for blockchain infrastructure, staking, and dApp development through partnerships with BitGo, Kraken, and others. - Strategic alliances and institutional-grade operations aim to bridge traditional finance with blockchain, targeting scalable dApp deployment via Telegram's user base. - Analysts highlight growing institutional confidence in

Bitget-RWA2025/09/26 06:47
AlphaTON Connects Conventional Finance with Blockchain through Telegram’s Platform

Where Might XRP Stand Three Years From Now?

Bitget-RWA2025/09/26 06:39
Where Might XRP Stand Three Years From Now?