US Senator Cynthia Lummis proposes tax amendments to eliminate the double tax burden on cryptocurrency trading and mining activities.
MAIN CONTENT
Cynthia Lummis proposes a law amendment to reduce double taxation applicable to cryptocurrency miners and traders.
The proposal has received support from industry advocacy groups and top crypto leaders.
The amendment aims to tax only the sale rather than both the receipt and use of cryptocurrencies.
How does Senator Cynthia Lummis propose tax reform for cryptocurrency miners and traders?
Senator Cynthia Lummis pledged to include an amendment in the OBBB bill to protect cryptocurrency users from unfair taxation, especially Bitcoin miners and stakers.
Ms. Lummis shared via social network X on June 30, 2025 that she will work to eliminate the risk of tax violations, allowing Americans to freely use digital assets.
“I am working on an amendment to the OBBB bill to ensure Americans can use digital assets without fear of tax violations. Details will be released soon!”
Cynthia Lummis, United States Senator, June 30, 2025, X (Twitter)
The One Big Beautiful Bill (OBBB) is currently being discussed by the US Senate to unify many fiscal policies, including cryptocurrency taxation, with a vote expected before July 4.
Why does Senator Lummis consider taxing miners and stakers “double taxation”?
Lummis emphasized that the current tax system taxes miners and validators twice: once when they receive block rewards and once when they sell those rewards, which is unfair to network participants.
“For years, miners and stakers have been taxed TWICE. Once when they receive rewards and again when they sell.”
Cynthia Lummis, United States Senator, June 30, 2025, X (Twitter)
Under current IRS regulations, rewards from mining, staking, cryptocurrency payments, and airdrops are all considered ordinary income and subject to personal income tax. Then, when the asset is sold, users are also subject to capital gains tax, resulting in double taxation.
Lummis' amendment aims to move to a model where assets are only taxed when they are sold, facilitating the trading and use of cryptocurrencies as a means of everyday payment without additional taxation.
Which experts and organizations support this tax reform proposal?
Michael Saylor, founder of Strategy – a pioneer in Bitcoin storage for businesses, expressed strong agreement with Lummis’ proposal, arguing that unfair taxes need to be ended so that the United States can lead the world in Bitcoin.
“We must immediately end unfair taxes on BTC miners if the United States wants to become a global Bitcoin superpower.”
Michael Saylor, CEO Strategy, 30/06/2025, X (Twitter)
At the same time, many advocacy groups such as Stand With Crypto, affiliated with Coinbase, also called on the US Congress to create conditions for users to use cryptocurrencies as cash, without being subject to unreasonable taxes.
Summer Mersinger, CEO of the Blockchain Association – an organization representing the blockchain industry, emphasized that adding Lummis’ amendment to the OBBB Bill will increase fairness and long-term sustainability for the cryptocurrency industry in the United States.
“Adding Lummis’ tax amendment to the bill will create fairness and ensure a sustainable foundation for our industry.”
Summer Mersinger, CEO Blockchain Association, 30/06/2025, X (Twitter)
While not yet law, if passed, this amendment would revolutionize the cryptocurrency tax system in the United States, eliminating double taxation and potentially exempting small, everyday transactions using cryptocurrencies from tax.
How do the current tax policy highlights and the proposed amendments compare?
Current Tax Criteria (US IRS) Lummis Proposal Tax on mining and staking rewards Taxed as income when received Not taxed when received Taxed on conversion/sale transactions Subject to capital gains tax Taxed only on sale Tax on small consumer transactions (e.g. buying coffee) Taxable event occurs Some small transactions may be tax-free
Frequently Asked Questions
What does Senator Lummis' tax amendment aim to do? The proposal aims to eliminate double taxation for miners and stakers, taxing only crypto assets when they are sold, increasing tax fairness. Who supports the tax amendment proposal? Advocates include Michael Saylor, Stand With Crypto and CEO of the Blockchain Association, and many crypto industry advocacy groups. How does crypto currently work? The IRS taxes mining/staking as income and collects capital gains tax when it is sold/rejected. Has the proposal become law? No, it is currently being discussed and voted on by the US Senate in the OBBB bill. How does this amendment affect everyday crypto users? It could make it easier for users to pay with crypto, avoiding double taxation.
Source: https://tintucbitcoin.com/tax-for-e-money-miner-bitcoin-supported/
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