Senator Cynthia Lummis Wants to Change the Unfair Crypto Tax Rules in the U.S.

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

Senator Cynthia Lummis is putting pressure on Congress to quickly pass new and fairer crypto tax rules using the reconciliation process.

Highlighting the problems with the current system, Senator Lummis pointed out that Bitcoin miners are being double-taxed—once when they earn block rewards and again when they sell the coins—making it difficult for them to be profitable and expand their operations.

Moreover, DeFi users could be taxed on every small transaction, potentially leading to a hefty tax burden despite minimal or no profit.

“This is an untenable system that would quickly stall any new technology, especially in an industry as fast-moving as digital assets,” Senator Lummis stated.

To mitigate these issues, Senator Cynthia Lummis is urging Congress to swiftly pass changes to the tax code through the reconciliation process, which would require a simple majority vote in the Senate to enact.

Specifically, her mission is to narrow the definition of “broker” in the tax code and remove additional regulations that are stifling the growth of crypto businesses.

Furthermore, Senator Lummis has introduced the BITCOIN Act, aiming to integrate Bitcoin into the country’s financial plans. Her office has already engaged with the Senate Finance Committee to initiate these changes.

As lawmakers in Washington continue to work on a series of new crypto rules that could fundamentally alter the industry, the House of Representatives is expected to vote on the GENIUS Act, which stands for "Giving Enormous Numbers of Users Stablecoins Efficiently Act," this week.

The bill, introduced by Congressman Tom Emmer, seeks to create a regulatory framework for stablecoins, aiming to prevent the administration from imposing its own regulations.

Additionally, the Senate Banking Committee is advancing the CLARITY Act, which focuses on the structure of the crypto market. The bill, introduced by Senators Tim Scott and GregorianCalendar Harris, is designed to provide regulatory clarity and create a legal path for crypto exchanges to operate in the U.S.