Senator Lummis Champions Crypto Tax Overhaul

In a bold move set to shake up the cryptocurrency landscape, U.S. Senator Cynthia Lummis is spearheading an amendment aimed at relieving tax burdens for crypto traders and Bitcoin miners. This proposal, which has garnered significant support from influential industry advocacy groups, is riding high on the current wave of legislative discussions.

No More Double Taxation!

Lummis, through a Twitter announcement on June 30, declared her intent to protect Americans engaged in crypto transactions from the looming threat of tax penalties. "I am working on an OBBB amendment to ensure Americans can use digital assets without fear of tax violations. More to come soon!" she tweeted.

The proposed amendment enters the arena as part of the larger Republican-backed reconciliation package known as the OBBB, or 'One Big Beautiful Bill,' which is currently under debate as lawmakers weigh key amendments ahead of a critical vote.

At the heart of Lummis' proposal is her fight against what she describes as 'double taxation' imposed on miners and validators. She insists that these individuals are effectively taxed twice: once when they earn block rewards and again when they sell them.

Tax Simplification on Crypto Use

Lummis is determined to change the narrative that currently treats mining, staking, and even minor crypto transactions—like buying a coffee with Bitcoin—as ordinary income, thus bringing taxpayers under the scrutiny of typical income tax rates. Under her plan, funds would only face taxation at the point of sale, not when received or used.

Support from Industry Heavyweights

Michael Saylor, the founder of Strategy, has also voiced strong support for Lummis’s initiative, stating, "We must end unfair taxes on BTC miners if America is going to be the world's Bitcoin superpower." His call-to-action reflects a growing urgency within the crypto community to simplify tax regulations.

In recent discussions, Lummis has also pushed to eliminate Biden-era tax rules requiring crypto firms to pay taxes regardless of profitability—a stance that resonates particularly with those seeking a more favorable operating environment.

The call for reform is echoed by prominent crypto advocacy groups. Coinbase-linked Stand With Crypto urged Congress to treat crypto as cash, ensuring that Americans enjoy the same freedoms in digital currency transactions. Summer Mersinger, CEO of the Blockchain Association, emphasized that passing Lummis's amendment could bring much-needed fairness and sustainability to the industry.

A Game-Changer for Cryptocurrency Users?

While the proposed amendment is not yet law, its passage could profoundly alter the landscape of cryptocurrency taxes in the United States, abolishing double taxation for miners and potentially making everyday crypto transactions tax-free. As the debate unfolds, all eyes are on Congress to see if this reform can pave the way for a brighter future for digital assets.