Senator Lummis Pushes Crypto Tax Reform in Senate Bill, Gains Support from Industry Advocates

Senator Cynthia Lummis is making a renewed push for crypto tax reform in Washington, and the digital asset industry is rallying behind her. The Wyoming Republican is advocating for changes to how mining and staking rewards are taxed, proposing language to be included in what’s now being dubbed the “big, beautiful bill”—a sweeping, 1,000-page reconciliation package currently under Senate debate.

Lummis argues that current tax rules are unfair to those who mine or stake cryptocurrencies, pointing out that individuals are effectively taxed twice: once when they receive block rewards, and again when they sell the tokens.

“It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower,” she wrote Monday on X.

Her proposed amendment includes a de minimis exemption for crypto transactions under $300 and clarifies how and when mining and staking rewards should be taxed. A memo from Lummis’ office explains that the goal is to tax crypto income only when it’s actually realized—when the assets are sold or converted—not when they’re received and still volatile.

“This aligns the taxation of mining and staking rewards with the actual realization of economic benefit,” the document states. “It prevents cash flow issues where taxpayers owe money on digital assets they haven’t sold and may not be able to easily liquidate.”

The De Minimis Exemption Path to Bitcoin as a True Medium of Exchange

See profile

Industry voices have been quick to support the amendment. Kristin Smith, president of the Solana Policy Institute, said on X that “fair tax treatment for staking is critical for U.S. crypto leadership,” adding that the measure could help drive domestic growth and job creation. Matthew Pines of the Bitcoin Policy Institute called the proposed changes “common-sense” and urged supporters to contact lawmakers, especially Senate Finance Committee ranking member Mike Crapo (R-ID).

While the final contents of the bill are still being negotiated, and its path through the House remains uncertain, there’s growing momentum around the idea that the U.S. needs a clearer and fairer approach to taxing digital assets. According to CNN, former President Donald Trump is pressing Republicans to push the bill through by Friday.

As the U.S. Senate debates sweeping legislation, crypto advocates see an opportunity for meaningful tax reform. Whether or not Senator Lummis’ proposal makes the final cut, the growing support signals a shift toward more serious and nuanced treatment of digital assets in federal policy.