๐ In this article:
๐น Senator Lummis pushes to include crypto tax changes in a major Senate reconciliation bill
๐น Goal: End unfair double taxation of miners and stakers
๐น Vision: Make the U.S. a global crypto and Bitcoin leader
๐น Foreign investors flee U.S. bonds over debt and inflation concerns
Senator Cynthia Lummis, a well-known crypto advocate from Wyoming, is pushing for a breakthrough in U.S. tax policy. She aims to include key digital asset tax reforms in the so-called โbig and beautifulโ reconciliation bill currently under Senate review.
In a post on X, Lummis pointed out that miners and stakers face unfair double taxation: first when they receive block rewards, and again when they sell them. According to her, it's time to fix this outdated system and ensure the U.S. stays ahead in the global crypto race.
๐ก What Is Lummis Proposing?
A document from her office reveals a proposal for a โde minimisโ tax exemption for crypto transactions under $300, as well as changes to how mining and staking rewards are taxed โ only upon actual economic benefit, not at the time of receipt. This would ease cash flow issues for taxpayers and reduce unnecessary tax burdens.
๐ The Crypto Industry Backs Her Move
Lummis has received vocal support from crypto leaders.
Matthew Pines, Executive Director at the Bitcoin Policy Institute, urged people to contact their senators, especially Sen. Mike Crapo, ranking Republican on the Senate Finance Committee.
Kristin Smith, President of the Solana Policy Institute, also voiced support, saying that fair staking tax rules are essential for the U.S. to lead the global crypto space and drive local innovation and job growth.
๐ Trumpโs Spending Plan Triggers Inflation Fears โ Investors Ditch U.S. Bonds
Still, itโs unclear whether Lummisโs amendment will make it into the final version of the tax bill. President Trump is pushing for the bill to pass by this Friday, but it must still clear the House of Representatives.
As the bill moves through the Senate, foreign investors are pulling away from U.S. Treasuries, citing rising concerns about deficits and inflation driven by Trumpโs tax cuts and stimulus plans.
๐ Investors Look to Europe
Toshinobu Chiba of Simplex Asset Management in Tokyo said he has already shifted from U.S. Treasuries to European bonds via futures contracts. He plans to move to cash bond markets once Trumpโs bill passes and inflation expectations rise. Germany, France, Australia, and Singapore are top picks for diversification.
A tax reform that could redefine the U.S. approach to crypto is on the line. Whether Lummis can secure her amendment in time remains to be seen โ but the outcome could shape the future of digital finance.
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