The recent push by Senator Cynthia Lummis to amend the “One Big Beautiful Bill” (OBBB) with crypto-friendly tax reforms is a bold but overdue step in fixing a glaring issue: our tax code is unfit for the digital asset era. The double taxation of miners and stakers—once at the moment of reward receipt, and again when those rewards are sold—represents a fundamental misunderstanding of how crypto functions. This taxing approach not only discourages participation but actively punishes American innovation, risking the nation’s leadership in a technology that is reshaping global finance. Rather than embracing this economic frontier, Washington’s current treatment smacks of shortsightedness and regulatory overreach.
The Double-Tax Dilemma: A Barrier, Not a Protection
Taxing block rewards at both creation and sale is as unreasonable as taxing harvest crops twice: once at picking and again at market. This is precisely the analogy that advocates like Dennis Porter make, insisting that tax policy should align with principles applied to tangible self-generated property. Yet, our current system effectively undermines miners and stakers who are the backbone of crypto networks. By imposing double taxation, the government creates a compliance nightmare with burdensome record-keeping demands and drives participants toward offshoring or decline in activity. Lummis’s proposal to tax these rewards only upon disposition is rational, fair, and essential to sustaining domestic crypto operations.
Why Minor Transactions Taxation Crushes Adoption
Another aspect that Lummis and crypto advocates highlight is the absurdity of capital gains computations on small-scale, everyday cryptocurrency use. Matthew Pine of the Bitcoin Policy Institute correctly identifies the current mandate as a compliance trap that actively stifles adoption. When people are forced to track taxes on trivial purchases—think a coffee or a book bought with crypto—it intimidates potential users and fuels tax evasion. Introducing a narrowly tailored “de minimis” exemption would not only ease the administrative load on taxpayers but also signal America’s readiness to integrate cryptocurrencies into broader commerce. This is a pragmatic reform that aligns with center-right ideals of simplifying government overreach while empowering individuals.
Cohesion in Crypto Advocacy Brings Hope for Progress
What is truly promising is the coalition forming between various crypto proponents—from mining groups and proof-of-stake supporters to broader trade organizations like the Digital Chamber. Their unified call to Congress to adopt Lummis’s tax fixes reflects a growing recognition that only sensible regulation can shepherd the industry toward maturity. The emphasis on courteous, concise communication with lawmakers demonstrates a strategic approach to legislative engagement, suggesting that the crypto community can—and should—play a constructive role in policymaking. If Washington listens now, it can avoid crippling innovation with outdated tax rules and instead foster an environment conducive to domestic leadership in blockchain technology.
America’s Window to Define the Crypto Future Is Narrow
The negotiations on the OBBB and potential amendment inclusion mark a rare and critical opportunity for American crypto tax policy reform. Delay or failure here risks ceding technological supremacy to more adaptable jurisdictions. Unfortunately, the Senate has been opaque regarding the amendment’s draft and how these proposals will be merged or separated in the final legislation, leaving stakeholders in limbo. It is imperative for legislators to grasp these nuances and act decisively. Failure to modernize tax treatment undermines not just cryptocurrency stakeholders but the national economy’s broader drive toward innovative dominance in the digital age. To remain competitive, America must embrace reform, not resistance.