Stacy Pereira
The ongoing Senate deliberations and subsequent voting on Trump’s “One Big Beautiful Bill” (OBBBA) legislation have become the talking point for every American. Senator Cynthia Lummis, a prominent advocate for crypto policy reform, is spearheading a push to include meaningful crypto tax fixes in the bill.
Among the amendments she proposes are ensuring digital assets receive the same treatment as other financial assets. There are two parts to the amendments she seeks.
Newsletter
Get weekly updates on the newest crypto stories, case studies and tips right in your mailbox.
1. Double taxation on mining and staking rewards
According to the current rules, miners and stakers are taxed twice, first upon receipt of block rewards or staking income (as ordinary income), and again when the asset is later sold (as capital gains). Lummis aims to align this crypto reward taxation with other self-generated income, taxing only at the point of sale, thus preventing punitive tax hits on unrealized gains.
2. Exemption for small transactions
The amendment also proposes a simplified rule for small crypto activities. It proposes to waive taxes on small crypto transactions below $300 and capped at $5,000 annually, these wouldn’t have to be reported as capital gains. This would significantly reduce the hassle of calculating capital gains for users with limited activity. The crypto industry believes this change could remove a major barrier for newcomers who’ve been reluctant to get involved.
Crypto advocates show support
Support is swelling among crypto‑aligned advocacy groups. The Digital Chamber, Solana Policy Institute, Satoshi Action Fund, and Bitcoin Policy Institute are actively urging lawmakers to back the amendment. However, the OBBB is undergoing a fast-tracked “vote‑a‑rama” process, with hundreds of amendments being weighed before final passage, which may overlook amendments like the ones being pushed by Sen. Lummis. It’s still unclear whether Lummis’s proposals will stand alone or split into separate provisions.
Given the massive scope of the OBBB legislation that includes tax-breaks, spending, energy, defense, and more, crypto advocates are bracing for last-minute shifts that could dilute or derail the amendment altogether. There is still hope; however, the final shape will depend on tight negotiations before the bill moves back to the House and the White House.
