U.S. Senator Cynthia Lummis has intensified her call for urgent legislative changes to the current cryptocurrency tax framework, highlighting the unfair double taxation faced by Bitcoin miners and other digital asset participants. According to Lummis, miners are taxed twice: initially when they receive block rewards and again upon selling those assets, creating a significant financial strain on those supporting blockchain operations.
At the 2025 Bitcoin Conference, Lummis emphasized that existing tax laws, especially those stemming from the 2021 Infrastructure Investment and Jobs Act, impose excessive burdens on miners, developers, and decentralized finance (DeFi) users. The broad definition of “broker” under this legislation forces miners and other non-custodial actors to comply with reporting requirements they cannot realistically meet, such as disclosing user identities and transaction details, which they often do not possess. This has led to complex compliance challenges and discouraged innovation within the U.S. crypto sector.
Lummis advocates for using the budget reconciliation process to swiftly amend these provisions, aiming to redefine “broker” in a way that exempts miners and developers from onerous reporting and taxation. She argues that reforming these outdated tax policies is crucial to fostering a more vibrant and competitive digital asset industry in America. Her proposed changes would alleviate the double tax on block rewards, simplify tax compliance, and potentially attract greater institutional investment by providing clearer regulatory guidance.
The senator’s push reflects growing concern among lawmakers and industry stakeholders that current tax rules do not adequately reflect the unique nature of blockchain technology and digital assets. By updating these regulations, Congress could remove significant barriers to crypto adoption and innovation, ensuring fairer treatment for miners and other key participants in the ecosystem.
Senator Lummis’s efforts underscore a broader movement to modernize crypto taxation, balancing the need for regulatory oversight with the imperative to support technological progress and economic growth in the digital economy.
