Senator Lummis Pushes for Crypto Tax Amendment To Ease Tax Burdens For Crypto Users

US Senator Cynthia Lummis has proposed an amendment to the upcoming US budget bill, so-called “One Big Beautiful Bill (OBBB).” 

According to her X post, the crypto tax amendment is aimed at ensuring that Americans can use crypto without fear of tax violations, especially those involved in crypto staking and mining. 

Senator Lummis Proposes Amendment To Reduce Taxation For Crypto Users

Monday, June 30, 2025, Senator Lummis made a series of posts on her X account. In the initial post, she revealed that she’s working on amending the Trump’s “One Big Beautiful Bill” to ensure that all US citizens “can use digital assets without fear of tax violations.”

Shortly after that, she made another post revealing the need to ease tax burdens and complexities for cryptocurrency users, especially for miners and stakers.

The X posts show that Lummis is possibly proposing to ease tax burden and eliminate undue tax treatment for cryptocurrency holders by putting a stop to double taxation. According to her, miners and stakers are taxed twice – “once when they receive block rewards, and again when they sell it.”

A Move Towards Broader Crypto Adoption

Shortly after the post, the crypto enthusiast contend that this move would eliminate, to a greater extend, headache for casual users. For instance, it will remove the stress associated with calculating capital gains on minor crypto activities. The move also has the potential to encourage broader crypto adoption among those who have been hesitant to try digital assets.

Several advocacy groups, including the Solana Policy Institute, Satoshi Action Fund, and the Bitcoin Policy Institute, have launched coordinated lobbying efforts to urge the US Congress to adopt these changes. 

These advocacy group are urging the lawmakers to treat block rewards like other forms of self-generated property, which are only taxed when sold.

Industry leaders like Cody Carbone of the Digital Chamber have also shown support for the proposal, calling it a common-sense fix that aligns cryptocurrency taxation with how physical goods are handled.

With time running short before the bill reaches the Senate floor, crypto advocates hope to secure a key victory that could pave the way for broader adoption by reducing compliance friction and keeping innovation within U.S. borders.

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.

The Possibility Of Passing This Law

Senator Lummis attempted to introduce her amendment into the legislative mix during a “vote-a-rama,” an unlimited amendment process that began in the Senate on Monday morning.

The stakes for this wide-ranging budget bill are exceptionally high for congressional Republicans.

However, party leaders are facing a tough battle to keep all of their members in the ‘yes’ column, given the narrow Republican majorities in both chambers.

Democrats have united in opposition to the nearly 1,000-page legislation, taking issue with provisions such as potential cuts to Medicaid, the rollback of green energy initiatives, and other contentious aspects.

The US House of Representatives managed to narrowly pass its own version of the massive spending bill last month.

If the Senate approves a version with changes, the bill would have to return to the House for another vote.

An analysis of the measure concluded that its provisions could add more than $3 trillion to the US budget deficit, a figure that has caused significant concern among fiscal conservatives and market observers.

The fate of Lummis’s crypto amendment, and the “One Big Beautiful Bill” itself, remains uncertain as lawmakers continue to navigate these complex political and fiscal challenges.