Senator Cynthia Lummis is on a mission to change the unfair crypto tax rules in the U.S. She believes that Bitcoin miners and DeFi users are getting a raw deal under the current system. Lummis says the tax rules are old and don’t work for the fast-growing world of digital assets.
Let’s take a closer look at what’s going on and how this could change the game for crypto in America.
Flawed Rules Target Crypto Investors
Senator Lummis, known for championing crypto causes in Congress, says America’s tax system is too old for modern crypto businesses. She believes it’s stopping new ideas from growing and is hurting miners, who have to pay tax twice, once when they earn block rewards and again when they sell the coins.
This double tax, Lummis argues, makes it hard for miners to make money and expand their businesses. But it’s not just miners who are struggling.
DeFi users also worry because they might get taxed on every small transaction, even if they don’t make any real profit.
Lummis says these unfair rules are holding crypto back, and it’s time to fix this.
How Lummis Addresses This Problem
To address these problems, Senator Cynthia Lummis is pushing Congress to use the reconciliation process. This method lets lawmakers pass changes quickly with a simple majority.
Her mission is to narrow down the meaning of “broker” and remove extra rules that make it hard for crypto businesses to grow.
Senator Lummis has also introduced the BITCOIN Act, which aims to make Bitcoin a key part of the country’s financial plans. She said her office has already talked to the Senate Finance Committee to start these changes.
Lawmakers Looking For Crypto Reforms
Meanwhile, lawmakers in Washington are busy discussing a series of new crypto rules that could totally change how things work. This week, Congress is getting ready to vote on the GENIUS Act, while the CLARITY Act is also moving ahead.
With all these plans in motion, there’s a growing feeling that Senator Lummis’s push for fairer crypto taxes might finally become reality.
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FAQs
In the USA, cryptocurrency is treated as property by the IRS. It’s subject to capital gains tax when sold, traded, or spent, and as income when earned (e.g., mining/staking rewards).
She is pushing to use the reconciliation process for quick changes, aiming to narrow the “broker” definition and ease rules for crypto businesses.
Besides Lummis’s efforts, the GENIUS Act (for stablecoins) and the CLARITY Act (for market structure) are also moving forward in Congress.
