U.S. Senator Cynthia Lummis has introduced a bold amendment aimed at reshaping how cryptocurrency is taxed in the United States, offering long-awaited relief for Bitcoin miners, stakers, and everyday crypto users. On June 30, Lummis introduced via X (formerly Twitter) that she is working on a proposal to ensure Americans can use digital assets like Bitcoin without fear of tax violations. Her statement coincides with the Senate’s ongoing discussions around the “One Big Beautiful Bill” (OBBB), a sweeping Republican-backed reconciliation package expected to face a final vote before July 4.

Currently, crypto users in the U.S. face a complicated and often burdensome tax system. Under current IRS rules, cryptocurrency mining, staking, and even receiving payments in crypto are treated as taxable income. These activities are subject to ordinary income tax at the time the digital assets are received. Later, when the same assets are sold or spent, they’re taxed again under capital gains rules. This structure effectively results in what critics call “double taxation,” especially impacting miners and validators who receive crypto rewards as part of their network participation.

Senator Lummis has called this model unfair and outdated. “For years, miners and stakers have been taxed TWICE—once when they receive block rewards, and again when they sell it,” she stated, urging lawmakers to modernize the tax code. Her proposed amendment would flip the current system on its head, taxing crypto only when it is sold, not when it is mined, staked, or used in everyday transactions like buying coffee. This approach would align digital assets more closely with how traditional currencies are treated, making it easier for Americans to use crypto as a form of payment without triggering unintended tax consequences.

The proposal has received strong support from major voices in the crypto industry. Michael Saylor, executive chairman of MicroStrategy and a prominent advocate for corporate Bitcoin adoption, publicly backed the amendment. “We must end unfair taxes on BTC miners if America is going to be the world’s Bitcoin superpower,” Saylor said. He emphasized that the current tax regime puts the U.S. at a disadvantage globally, as other countries adopt more favorable crypto policies to attract blockchain innovation.

Crypto advocacy groups are also rallying behind the amendment. Coinbase-linked “Stand With Crypto” issued a statement calling for equal treatment of digital assets and cash, arguing that small crypto transactions should not be taxed as capital events. Summer Mersinger, CEO of the Blockchain Association, a leading industry coalition, echoed this sentiment. “By adding the Lummis tax amendment to the Big Beautiful Bill, the Senate can create more fairness and long-term sustainability in our industry,” she said.

Senator Lummis has long been a champion of pro-crypto legislation. In May, she opposed Biden-era tax proposals that would have imposed obligations on crypto firms regardless of profitability. Those proposed rules, critics said, would stifle innovation and drive blockchain startups offshore. Lummis’ latest amendment appears to be a continuation of her efforts to build a legal framework that encourages crypto adoption while protecting consumers and businesses alike.

It’s important to note that the Lummis amendment is not yet law. It must first be approved as part of the broader OBBB reconciliation bill. Debate is currently underway in the Senate, with numerous proposals being considered. If passed, the amendment would mark a historic shift in U.S. crypto tax policy, removing one of the biggest obstacles to mainstream adoption. By eliminating double taxation and allowing for tax-free everyday transactions, the measure could transform how Americans use and interact with digital assets.

As the Senate prepares for a final vote, crypto stakeholders across the country are watching closely. Whether or not the amendment passes, it signals a growing recognition among lawmakers that the U.S. tax code needs to evolve with emerging technologies. For Bitcoin miners, stakers, and crypto enthusiasts, Lummis’ proposal offers a glimpse of a more favorable and practical future for digital finance in America.