Senator Cynthia Lummis has introduced an initiative for an amendment to tax regulations concerning users of Bitcoin and other digital assets aimed at alleviating tax penalties.
Purpose of Lummis' Amendment
Lummis announced her work on an amendment that addresses tax rules for users of Bitcoin and other digital assets. She emphasized that her aim is to allow Americans to use digital assets without the fear of tax penalties.
Critique of Double Taxation
Lummis criticized the current tax treatment for cryptocurrency miners and stakers in the U.S. She noted that these participants often face a double taxation burden. First, they owe taxes when they receive block rewards. Later, they owe taxes again if they sell those rewards. Lummis described this treatment as unfair and asserted the necessity for changing the rules.
Support from the Administration
Lummis, representing Wyoming, is a known supporter of Bitcoin within U.S. politics. Her recent actions align with the current administration’s stance. President Donald Trump has expressed support for Bitcoin, claiming its adoption reduces pressure on the U.S. dollar and fosters job creation and economic growth.
Lummis' amendment to the tax bill represents new opportunities for digital asset users and underscores the relevance of taxation issues in the rapidly evolving world of cryptocurrencies.
