- Lummis proposes to eliminate double taxation on miners’ rewards, aiming to boost the U.S. crypto sector.
- White House expresses support for crypto tax clarity.
- Amendments may encourage domestic crypto mining investments.
Senator Cynthia Lummis has proposed legislative amendments to end double taxation on Bitcoin miners in the United States, supported by the White House.
The proposal aims to align tax events with actual economic benefits, reducing cash flow issues for miners and enhancing U.S. crypto competitiveness.
Senator Cynthia Lummis, known for her crypto-friendly stance, is advocating tax reforms to stop double taxation on miners’ block rewards. She argues that miners are unfairly taxed twice for digital asset earnings, proposing changes to make America competitive in the burgeoning crypto sector.
Senator Cynthia Lummis, U.S. Senator, “For too long, miners and stakers get taxed when they earn block rewards and again when they sell them…The remedy is ending this unfair double tax and making America the top Bitcoin and crypto power.”: Source
The reforms focus on eliminating double taxation, aligning tax events
with economic benefit from asset sales rather than receipt, and introducing a de minimis exemption for transactions under $300. The White House has acknowledged the need for improved clarity around digital asset taxation.
Initial impacts of these reforms are anticipated to reduce financial burdens on miners and potentially deter the offshoring of hashpower. The proposed incentives for renewable energy usage could further bolster domestic mining operations.
The amendments are expected to prompt policy shifts in the taxation of Bitcoin and other cryptocurrencies, with White House support indicating bipartisan interest in digital asset reforms. Industry observers are keen on whether these proposals will be ratified into law, marking a pivotal shift in U.S. crypto policy. Public and legislative interest remains high as discussions continue.
Industry insiders predict corporate shifts toward sustainable mining, influenced by the proposed incentives and policy changes. The removal of double taxation could lead to increased liquidity retention domestically and potentially introduce a friendlier regulatory environment, stimulating U.S.-based crypto activities. The broader impact on the crypto economy remains to be more deeply analyzed.
