Senator Kristen Lummis is proposing changes to the taxation of digital assets in the U.S., aiming to eliminate double taxation for those earning block rewards.
Lummis' Tax Proposal
In a post on social platform X, Senator Lummis stated she is working to "stop unfair tax treatment" of digital asset holders by eliminating double taxation on block rewards. Under current law, crypto earned through staking or mining is taxed first upon receipt and again when sold—a system Lummis believes stifles innovation.
Public Support and Calls for Changes
This move echoes earlier bipartisan calls to exempt small crypto transactions from capital gains tax, a proposal that would eliminate the need for tedious calculations on everyday purchases. Supporters argue that the current rules are impractical and deter adoption.
Future of Tax Changes and Their Impact
Advocacy groups, including the Bitcoin Policy Institute, Satoshi Action Fund, and the Solana Policy Institute, have launched coordinated lobbying efforts urging Congress to adopt these changes. They are asking lawmakers to treat block rewards like other forms of self-generated property, which are taxed only upon sale. However, Senate negotiators have not yet released the amendment’s language, and it remains unclear whether the tax changes will be packaged together or split into separate proposals.
Senator Lummis' proposals for changing cryptocurrency taxation may help simplify processes and increase accessibility for users, strengthening innovation within the crypto space.
