Sen. Lummis pushes for crypto tax fixes in 'big, beautiful bill,' gaining support from crypto advocates

Cryptocurrency industry advocates are rallying behind Sen. Cynthia Lummis' amendment to get digital asset tax changes added to what's being called the "big, beautiful bill."

As senators debate passage of the over 1,000-page reconciliation bill on Monday, the crypto-friendly Wyoming Republican is pushing to include some provisions targeting "unfair tax treatment" of crypto.

"For years, miners and stakers have been taxed TWICE," Lummis said on Monday in a post on X. "Once when they receive block rewards, and again when they sell it. It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower."

The provisions would set a de minimis exclusion setting a $300 threshold and include language on how miners and stakers should be taxed, according to a one-pager from Sen. Lummis' office obtained by The Block.

"This aligns the taxation of mining and staking rewards with the actual realization of economic benefit, rather than forcing recognition based on volatile and often uncertain fair market values at the time of receipt," according to the document. "The approach prevents cash flow problems where taxpayers owe taxes on assets they haven't sold and may not be able to liquidate easily."

Some industry advocates are calling on people to call lawmakers, including Senate Majority Leader John Thune, and voice their support. Crypto advocacy groups have been pushing for changes on how crypto is taxed, particularly focused on a de minimis exemption.

"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, in a post. "Please take five minutes today to call or email your elected officials—especially Senator Mike Crapo (R-ID), the leading Republican on the Senate Finance Committee—to urge them to back this commonsense fix."

Kristin Smith, president of the Solana Policy Institute, voiced her support as well.

"Fair tax treatment for staking is critical for US crypto leadership," Smith said on X. "Congress can unlock domestic growth & create jobs with common-sense staking tax clarifications."

It's unclear whether Lummis' amendment could make it into the "big, beautiful bill." The Senate is voting on a number of amendments, and President Donald Trump is pressuring Republicans to pass the bill by Friday, according to CNN. The bill also still has to go through the House before going to Trump's desk.