- Senator Lummis proposes amending a tax bill to prevent penalties for Americans using Bitcoin and other digital assets legally.
- She criticizes current double taxation rules forcing miners/stakers to pay tax when receiving and later selling block rewards.
Senator Cynthia Lummis announced work on a legislative amendment. This amendment targets tax rules affecting users of Bitcoin and other digital assets. Lummis stated her goal is to let Americans use digital assets without fear of tax penalties. She made this announcement publicly.
The amendment relates to a larger bill under discussion. This larger bill is known as the “One Big Beautiful Bill” (OBBB). The OBBB proposes a 5% tax on certain money transfers sent abroad. This tax would cover transfers made using cryptocurrency exchanges. Lummis argues this tax would create difficulties for digital asset users.
Lummis further criticized current U.S. tax treatment for cryptocurrency miners and stakers. She explained these participants often face a double taxation burden. First, they owe tax when they receive block rewards. Later, they owe tax again if they sell those rewards. Lummis called this treatment unfair. She believes changing these rules is necessary for the U.S. to lead in Bitcoin and cryptocurrency development.
Lummis, representing Wyoming, is a known supporter of Bitcoin within U.S. politics. Her recent actions follow her participation at the Bitcoin Conference 2025. At that event, she endorsed Bitcoin as a strategic asset for the United States. She also noted legislative progress in states like Arizona, New Hampshire, and Texas. These states have passed laws enabling state Bitcoin reserves. Over 30 other states are reportedly considering similar proposals.
This legislative push aligns with the current administration’s position. President Donald Trump has publicly supported Bitcoin since returning to office. Trump recently described Bitcoin as “incredible”. He stated its adoption helps reduce pressure on the U.S. dollar. Trump also emphasized the cryptocurrency sector’s role in job creation and economic growth. He stressed the need for U.S. leadership to prevent dominance by countries like China.
Administration actions include pardoning Ross Ulbricht, removing certain industry regulations, and signing an executive order for a strategic Bitcoin reserve. Additionally, Trump supports the swift passage of the GENIUS Act.
This Act aims to regulate dollar-backed stablecoins. The GENIUS Act has already passed the Senate and awaits debate in the House of Representatives. Lummis’s amendment represents another step in this evolving policy direction regarding digital assets.
