U.S. Senator Cynthia Lummis (R-WY), a long-time advocate for digital asset innovation, is preparing to introduce a key amendment to the forthcoming “One Big Beautiful Bill,” aimed at easing tax burdens for cryptocurrency users — particularly those involved in mining and staking activities.
In a post on social media platform X (formerly Twitter), Lummis declared her intention to “stop unfair tax treatment” of digital asset holders by eliminating double taxation on block rewards. Currently, crypto rewards earned via mining or staking are taxed twice: first upon receipt, and again when sold. This dual-layer tax structure, critics argue, is both punitive and a deterrent to innovation.
“This amendment is about fairness and simplicity,” said Lummis in her post. “We need to make sure that digital asset users — especially miners and stakers — are not punished by an outdated tax system that doesn’t understand how crypto works.”
Her push reflects a growing bipartisan consensus around the need for modernized crypto tax rules, particularly those that promote U.S. competitiveness in blockchain and Web3 technologies.
The amendment echoes previous efforts in Congress to exempt small crypto transactions — such as buying a cup of coffee with Bitcoin or USDC — from capital gains tax. These initiatives aim to remove the compliance burden associated with tracking every small transaction for tax purposes, which has been widely criticized as impractical and anti-innovation.
The crypto policy community has rallied behind Lummis’s proposal. Advocacy groups such as:
have launched coordinated lobbying efforts to ensure the amendment makes it into the final bill. These organizations argue that block rewards should be treated as self-generated property, similar to crops grown by a farmer or art created by an artist — taxed only when sold, not when created.
Cody Carbone, Chief Policy Officer at the Digital Chamber, called the proposal “a common-sense fix that aligns crypto taxation with how physical goods are handled in the U.S. tax code.”
With the “One Big Beautiful Bill” nearing its introduction on the Senate floor, time is tight for crypto advocates to secure support for the amendment. The language of the amendment has not yet been released publicly, and it remains unclear whether tax provisions related to block rewards and small transactions will be bundled together or voted on separately.
Still, optimism remains high within the industry. A successful passage could remove a key regulatory obstacle and mark a turning point for crypto adoption and innovation within the United States.
If passed, the amendment could:
For now, all eyes are on the Senate as Lummis and her colleagues work to translate policy vision into legal reality.
July 2025, Cryptoniteuae