US Senator Lummis Calls For Removal Of Double Taxation In Bitcoin And Crypto

• Senator Cynthia Lummis continues to push for legislation to address the double taxation on Bitcoin miners and crypto stakers.
• Proposals for the integration of a provision addressing the issue failed to get incorporated into the “One Big Beautiful Bill Act.”
• Despite the setback, the rumor mill is rife with speculation that the Trump administration may be cooking up an initiative to abolish taxes on crypto transactions.

Senator Cynthia Lummis of Wyoming recently suggested adding a provision to the “One Big Beautiful Bill Act” that would have brought taxation amendments for Bitcoin (BTC) and cryptocurrency holders.

“For years, miners and stakers have been taxed TWICE. Once when they receive block rewards, and again when they sell it,” Lummis posted on X just before the 24-hour deliberation of the bill. “It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower.”

Unfortunately, the bill narrowly passed in the US Senate under a tiebreaker vote without the said changes. The Republican senator, alongside other supporters of the proposal, later expressed disappointment about the measure’s exclusion.

ADVERTISEMENTNevertheless, Lummis believes the bill, although “isn’t perfect,” is a “major step in the right direction.” She also congratulated US President Donald Trump for his support of the legislation.

The bill is now heading to the US House of Representatives for further discussion of the changes introduced by the Senate.

## Double Taxation for Bitcoin and Crypto Miners

Under existing rules, the US Internal Revenue Service (IRS) taxes BTC and crypto miners and stakers when they receive block rewards as income. Additionally, the government collects another set of dues coming from the capital gains of these digital assets when sold by the same miners and stakers.

ADVERTISEMENTTo date, the IRS doesn’t appear to be initiating any measures to adjust the capital gains derived from Bitcoin mining or crypto staking. Meanwhile, some Bitcoin and crypto advocates in the legislature have occasionally brought up the double taxation issue plaguing the system, with some arguing that digital assets should align with property taxation laws.

So far, their attempts to overhaul the system have failed to gain traction from the consensus. However, the maturity of the digital assets sector and growing institutional support in the industry could eventually change the course of their plight.

Zero Tax for Bitcoin and Crypto Pushed

There’s quite a buzz going around the crypto social media circle about the Trump administration working on abolishing taxes from Bitcoin and crypto transactions. Although there hasn’t been any official confirmation regarding the matter at the federal level, it could spell massive progress within the industry.

As some advocates have pointed out, a federal law eliminating such a burden would effectively bar states from imposing duties on transactions arising from digital assets. In the long run, the benefits would significantly boost crypto adoption and turn the US into the world’s “crypto capital,” as Trump envisioned during his campaign.

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