Lummis Proposes Crypto Tax Reform
Senator Cynthia Lummis continues to champion the crypto industry, advocating for fairer tax policies to foster US leadership in digital finance. She recently shared her plans on X (formerly Twitter) to address what she deems unfair tax rules affecting digital asset users.
Senator Lummis Fights Double Taxation in Crypto
Following a recent Supreme Court ruling against the IRS accessing Coinbase user data, Senator Lummis announced an amendment to the "One Big Beautiful Bill" (OBBB). This amendment aims to clarify tax rules for crypto users, preventing unexpected tax liabilities and encouraging wider adoption.
Key focus: The amendment specifically targets the double taxation of crypto miners and stakers. These individuals currently face taxes on mining/staking rewards and again upon selling those assets. Senator Lummis argues this is detrimental to innovation and the US's global competitiveness in the crypto space.
Making the US a Crypto Leader
By eliminating this double taxation, Senator Lummis believes the US can solidify its position as a global leader in Bitcoin and cryptocurrencies. This aligns with her broader efforts to create a clear and fair regulatory framework for the industry. Her longstanding support for Bitcoin and digital assets is well-documented in various interviews and public appearances.
This proposed reform could significantly increase crypto participation by reducing tax burdens. Supporters believe it will attract blockchain startups and encourage innovation. The clarity offered by revised tax guidance could also prevent unfair penalties for industry players.
Prominent Bitcoin advocate Michael Saylor publicly endorsed Senator Lummis's proposal, further strengthening the movement for tax reform. This follows Senator Lummis's earlier call for amendments to existing crypto tax regulations, highlighting what she considers unfair targeting of Bitcoin and other cryptocurrencies.
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