U.S. Senator Cynthia Lummis is calling for urgent changes to crypto tax laws, saying current rules unfairly target Bitcoin and other digital assets. In a recent post on X, she criticized America’s tax framework, arguing it’s outdated and harms innovation in the crypto space.
Lummis noted that one of the worst hit is the Bitcoin miners. With the current laws, miners can be taxed twice, both on block rewards and at the point of selling coins. Another area of risk that DeFi users face is the possibility of incurring several taxable events without gaining profits.
Without mentioning them directly, Lummis seemed to be referring to IRS regulations that were created as part of the 2021 Infrastructure Investment and Jobs Act.
This legislation made a blanket definition of crypto miners and developers as “brokers,” requiring them to report information they frequently do not possess, including the names of users and the data on their transactions.
She urged Congress to use the reconciliation process, which allows tax law changes to pass with a simple majority, to fix the issue. Her goal is to narrow the definition of “broker” and ease burdens on the crypto industry.
It is all about the timing. Bitcoin has just reached an all-time high of $111,600, and there is growing optimism in the air as legislators discuss significant crypto bills such as the GENIUS and CLARITY Acts. A new bill suggesting a Strategic Bitcoin Reserve is also getting popular.
With growing pressure and market momentum, crypto tax reform could finally be on the horizon.
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