Senator Cynthia Lummis is spearheading a last-minute push to fix what she calls “unfair tax treatment” of crypto earnings as the Senate works to finalize its sprawling reconciliation package.
On Monday, the Wyoming Republican renewed her call to end the double taxation of miners and stakers—who, under current law, pay taxes twice: once when they receive newly minted tokens and again when they sell them.
“For years, miners and stakers have been taxed TWICE,” Lummis wrote on X.
“It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower.”
According to a policy brief from her office, the proposed amendment would create a $300 de minimis exemption for small transactions and align taxation with the actual sale of assets rather than the fluctuating value when tokens are awarded.
“This approach prevents cash flow problems where taxpayers owe taxes on assets they haven’t sold and may not be able to liquidate easily,” the document noted.
Crypto Advocates Rally for Support
As lawmakers debate the 1,000-page bill, crypto industry groups and policy advocates are urging supporters to flood Senate offices with calls and emails.
“Congress is drafting the Senate reconciliation bill now, and a narrowly tailored Bitcoin de minimis tax exemption hangs in the balance,” said Matthew Pines, executive director at the Bitcoin Policy Institute.
He encouraged people to contact their representatives, especially Senator Mike Crapo, the Senate Finance Committee’s ranking Republican.
Kristin Smith, president of the Solana Policy Institute, echoed that sentiment:
“Fair tax treatment for staking is critical for U.S. crypto leadership,” she posted.
“Congress can unlock domestic growth & create jobs with common-sense staking tax clarifications.”
The push comes amid broader debates in Washington over how crypto should be regulated, taxed, and integrated into the financial system—debates that have increasingly bipartisan attention but remain politically charged.
Bill Faces Political Tensions and High-Profile Criticism
It’s still unclear whether Lummis’ crypto tax amendment will be included in the final package. The Senate is voting on a flurry of amendments, while President Donald Trump has been privately urging Republicans to deliver the bill to his desk by the end of the week.
But the legislation has also attracted fire from influential critics. On Monday, the world’s richest man—who famously champions Dogecoin—issued a scathing rebuke, blasting lawmakers for supporting massive spending while claiming to be fiscally conservative.
“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” he wrote in a post that quickly went viral.
“And they will lose their primary next year if it is the last thing I do on this Earth.”
With the Senate timeline tightening and the House still to weigh in, the fate of Lummis’ crypto tax fix—and the broader bill—remains uncertain.
Quick Facts
- Senator Cynthia Lummis is pushing a $300 de minimis exemption for crypto transactions.
- The amendment would end double taxation on staking and mining rewards.
- Advocacy groups are urging Americans to contact their senators to support the change.
- High-profile critics warn the bill could cost lawmakers their seats in upcoming elections.
