- Lummis wants to exempt crypto payments under $300 from taxes to ease reporting rules and drive adoption.
- Her amendment also proposes taxing crypto rewards only when sold, eliminating double taxation.
- The “Big Beautiful Bill,” central to Trump’s agenda, is facing heavy debate and could add over $3 trillion to the U.S. deficit.
As Congress haggles over a massive federal spending package, crypto taxes are sneaking back into the spotlight.
Senator Cynthia Lummis is working behind the scenes to attach a new crypto-friendly amendment to the so-called “One Big Beautiful Bill Act” —a cornerstone of Donald Trump’s legislative agenda.
If approved, her proposal could reshape how crypto rewards and everyday transactions are taxed in the U.S., offering long-sought relief to users and builders across the industry.
Lummis Makes Her Move on Crypto Taxes
Lummis’ plan would exempt crypto transactions under $300 from taxation, with a $5,000 annual limit, giving casual users more room to spend digital assets without paperwork headaches.
More importantly, it would end the current system of taxing staking, mining, and other rewards twice, once when earned, and again when sold.
Instead, her amendment would treat rewards like any other capital asset, taxing them only when they’re eventually sold.
That fix has been a top priority for groups like the Chamber of Digital Commerce, which called the current tax setup “a long-overdue mistake.”
“Senator Lummis’ provision solves this by taxing rewards only when sold,” the Digital Chamber said.
Staking and Mining Relief, Plus a Crackdown on Loopholes
Under current IRS rules, validators and miners must report the fair market value of rewards as income the moment they’re received, creating confusion and often tax bills for tokens that haven’t been sold yet.
The amendment would simplify that, applying taxes only at the point of sale, bringing crypto in line with how traditional assets are handled.
Lummis is also targeting the wash-sale loophole, which allows investors to harvest tax losses by selling an asset and buying it back immediately.
Her plan would restrict that for crypto, mirroring existing rules in traditional finance.
All of this is happening during the Senate’s “vote-a-rama,” a long amendment marathon packed with high-stakes proposals from both parties.
But getting anything passed won’t be easy. The “Big Beautiful Bill” itself is already under fire, facing pushback from Democrats and internal rifts among Republicans.
Even if it clears the Senate with Lummis’ amendment included, the House would need to sign off again, and analysts warn the bill could balloon the national deficit by over $3 trillion.
Still, for crypto advocates, it may be the best shot in years at securing meaningful tax reform.
