The crypto industry supporters are backing Senator Cynthia Lummis’ amendment to include digital asset tax changes in the “big, beautiful bill.”
While senators consider passage of the more than 1,000-page reconciliation bill, the crypto-friendly Wyoming Republican is advocating for adding some provisions to address “unfair tax treatment” of crypto.
In an X post, Lummis highlighted that for a long time, miners and stakers have faced double taxation . She added that they get taxed once when they earn block rewards and again when they sell them.
According to Lummis, the remedy for this is to end this unfair tax policy and make sure the US becomes the leading power in Bitcoin and cryptocurrency.
Sen. Lummis highlights a remedy for miners and stakers’ taxation
A one-pager from Sen. Lummis’ office, obtained by reporters, hinted that the provisions would establish a de minimis exemption with a threshold of $300. It includes language about how miners and stakers are required to pay taxes.
According to the briefing, the goal is to match the taxes on mining and staking rewards with when people actually gain economic benefits, instead of making them report based on changing and often unclear market values when they receive them, the document stated.
Additionally, it highlighted that this method helps avoid cash flow issues where taxpayers have to pay taxes on assets they have not sold and might find it hard to turn into cash.
In the meantime, some in the industry needed people to call lawmakers, including Senate Majority Leader John Thune, and express their support. In addition, various crypto advocacy groups have been lobbying for tax changes on crypto and, most importantly, pushing for a de minimis exemption.
Matthew Pines, a Bitcoin Policy Institute Executive Director, offered his opinion. In an X post, Pines noted that the Congress is currently drafting the Senate reconciliation bill and that a particular Bitcoin de minimis tax exemption is at stake.
“Please take five minutes today to call or email your elected officials — especially Senator Mike Crapo (R-ID), the top Republican on the Senate Finance Committee — and ask them to support this commonsense fix,” he added.
Kristin Smith, the president of the Solana Policy Institute, also expressed her support. According to Smith, fair tax rules for staking are essential for the US to lead in crypto.
She also emphasized that Congress can boost local growth and create jobs by clarifying stakeholder tax rules.
However, it is unclear whether Lummis’ amendment can find its way into the “big, beautiful bill.”
Several foreign investors intend to shift from the US Treasuries amid increased inflation
The Senate is currently voting on several proposed amendments, and President Trump is demanding that the Republicans get the bill through by Friday this week, according to reports from sources. The bill must still clear the House before landing on Trump’s desk.
As the bill moves through the US Senate, more foreign investors are looking to shift away from the US Treasuries, which are losing their appeal due to concerns about deficit spending and tariffs that could increase inflation.
President Donald Trump’s large tax cut and big spending measures will ramp up US debt by $3.3 trillion, the nonpartisan Congressional Budget Office has estimated, as runaway deficits and sweeping debt led Moody’s to cut its credit rating in May.
Toshinobu Chiba, who manages rates and credit funds at Simplex Asset Management in Tokyo, stated that he was definitely worried about the growing fiscal deficit.
Chiba mentioned that he has been using futures to move away from the US Treasuries and invest in European debt. He then revealed plans to switch to the cash bond market once Trump’s “big, beautiful bill” is approved and inflation expectations rise.
He anticipates that the first choices should be in Europe, especially the bunds and French bonds, adding that Australia and Singapore are also options for global investors.
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