Senator Lummis Pushes for Bitcoin Mining Tax Reform to Boost US Crypto Hub

Senator Cynthia Lummis, a prominent advocate for pro-Bitcoin legislation, is spearheading efforts to reform existing tax laws to eliminate double taxation on Bitcoin mining rewards. At the 2025 Bitcoin Conference, Lummis highlighted the challenges posed by current tax laws, stating that they make such transactions difficult and impractical. The proposed reform aims to reduce tax burdens on miners, potentially enhancing the U.S.'s appeal as a crypto hub.

The primary focus of the proposed legislation is on Bitcoin, with potential effects on other Proof-of-Work assets like Litecoin and Bitcoin Cash. The goal is to achieve clarity and fairness in tax treatment for miners. Senator Lummis is urging Congress to use the reconciliation process to expedite these reforms, emphasizing that the current rules are flawed and create unnecessary hurdles for legitimate crypto industry participants.

Proposed changes could attract more business activity within the U.S. crypto industry by creating a more favorable tax environment for miners. The removal of the double tax could signal increased institutional interest from domestic and international companies. Historically, favorable regulatory clarity has driven institutional capital and market stability in similar scenarios.

Industry figures support Lummis's initiative, emphasizing the need for a clear distinction between miners and brokers. The plan would potentially mitigate challenges posed by the 2021 Infrastructure Act and position the United States as a more competitive mining hub. Historical trends suggest successful legislative reforms increase market participation and competitiveness.

Lummis revealed on June 30 that she would introduce an amendment to add crypto tax language to the “One Big Beautiful Bill” (OBBB). This move comes amid growing pushes for clearer and more favorable tax policies for the crypto sector. The senator has been vocal about the current tax rules, which she believes are flawed and detrimental to the growth of the industry. She has called for an end to the double taxation that miners and stakers face, where they are taxed once when they receive block rewards and again when they sell the cryptocurrency.

Lummis's advocacy is supported by industry leaders such as Michael Saylor, who has expressed alignment with her vision for tax reform. The proposed changes aim to create a more favorable environment for Bitcoin mining and staking, which could potentially boost the U.S.'s position as a global leader in the cryptocurrency space. By addressing the tax issues, Lummis hopes to attract more investment and innovation in the industry, ultimately benefiting the broader economy.

The senator's push for tax reform is part of a larger effort to modernize the U.S. tax code to better accommodate the rapidly evolving digital economy. The proposed amendments, if successful, could provide much-needed clarity and relief for cryptocurrency miners and stakers, who have long grappled with complex and often burdensome tax regulations. This initiative underscores the growing recognition of the importance of the cryptocurrency industry and the need for supportive policies to foster its growth.