Crypto Advocates Back Sen. Cynthia Lummis’ Push to Reform Digital Asset Tax Rules

As the U.S. Senate debates a sweeping reconciliation package dubbed the "Big, Beautiful Bill," crypto industry advocates are rallying behind an amendment introduced by Senator Cynthia Lummis aimed at reforming outdated and burdensome tax rules for digital assets.

The Wyoming Republican — long known for her support of blockchain innovation — is pushing to include language that would address what she calls “unfair tax treatment” of crypto miners and stakers. The amendment is being considered as part of the larger legislative package exceeding 1,000 pages.

Ending Double Taxation on Block Rewards

“For years, miners and stakers have been taxed TWICE,” Lummis posted on X Monday. “Once when they receive block rewards, and again when they sell it. It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower.”

According to a policy document shared with The Block, the amendment proposes a de minimis exemption that would exclude transactions under $300 from capital gains tax. It also outlines a new framework for taxing staking and mining rewards — shifting taxation from the moment of receipt to the point of actual economic realization, such as a sale.

This shift would eliminate situations where individuals are taxed on crypto assets they haven’t sold and might not easily be able to liquidate, helping to resolve ongoing cash flow issues caused by fluctuating crypto prices.

Industry Mobilization in Support

Crypto advocacy organizations and community members have begun urging constituents to contact lawmakers, including Senate Majority Whip John Thune, to voice support for the amendment. Groups have long called for tax clarity, especially around staking income and small crypto transactions used for everyday purposes.

The proposed tax changes are seen as a critical step toward aligning U.S. crypto policy with economic realities, and making the country a more competitive hub for blockchain innovation.

If included in the final bill, the Lummis amendment could mark a turning point in how the U.S. tax code treats digital assets — moving toward a more rational, innovation-friendly regulatory environment.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.