Lummis Pushes Crypto Tax Fix in Senate Reconciliation Bill

Senator Lummis seeks fair crypto taxation by exempting small transactions and taxing block rewards only upon sale.

Crypto advocates urge urgent support for Lummis' amendment to simplify taxation and keep validation activity within the U.S.

The proposed amendment aims to prevent liquidity issues and modernize outdated crypto tax rules before the bill reaches the Senate floor.

U.S. Senator Cynthia Lummis is pushing to reshape crypto tax rules through the upcoming Senate reconciliation bill. Her proposed amendment seeks to exempt crypto transactions under $300 and fix the double taxation issue on block rewards. The Wyoming Republican aims to include this proposal in what she dubbed the “Big Beautiful Bill.” Senators are set to debate this 1,000-page legislation on Monday. Meanwhile, industry leaders are rallying public support to influence key lawmakers before the bill hits the Senate floor.

Crypto Transactions Under $300 Could Be Exempt

The amendment introduces a de minimis exemption for crypto payments under $300, capped at $5,000 annually. This would simplify daily crypto use and ease tax burdens on small transactions. Moreover, it addresses how block rewards from mining and staking are taxed. Currently, these rewards face taxation at creation and again at sale. Lummis aims to fix this, ensuring taxes apply only when rewards are sold.

Besides improving fairness, this move would help users avoid liquidity issues. Taxing unsold rewards often leaves investors owing money without access to immediate funds. According to Lummis’ office, this amendment aligns taxes with the actual realization of value.

Industry Voices Urge Immediate Action

Crypto advocates view this moment as a narrow but vital window. Hence, several groups are encouraging supporters to contact Congress. Matthew Pines of the Bitcoin Policy Institute urged users to call Senator Mike Crapo, the Senate Finance Committee's leading Republican.

Kristin Smith, President of the Solana Policy Institute, also backed the measure. She stressed that fair staking tax rules are key to crypto growth and job creation in the U.S. Moreover, Cody Carbone from the Digital Chamber emphasized treating block rewards as “created property.” He argued this would reduce compliance costs and keep validation activity domestic.

However, the bill must still pass through both chambers. President Donald Trump has reportedly pushed Republicans to finalize the legislation by Friday. Additionally, the final language of the tax amendment has not been released.

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