Senator Lummis Fights to Revolutionize Crypto Taxation in Trump's Big Beautiful Bill

Proposed Amendment Could Exempt Small Transactions and End Double Taxation

U.S. Senator Cynthia Lummis is throwing down the gauntlet, pushing to inject a game-changing crypto tax amendment into President Donald Trump's colossal Big Beautiful Bill. Her mission? To shield small transactions from capital gains taxes and squash the double taxation headache plaguing miners and stakers.

On June 30, Lummis dropped the bombshell, announcing her crusade to weave new language into the monster budget reconciliation bill that could flip the script on how digital asset activity gets taxed.

"It's time to stop this unfair tax treatment and ensure America is the world's Bitcoin and Crypto Superpower," Lummis fired off on X, rallying the crypto troops.

Trump's Big Beautiful Bill, a behemoth over 1,000 pages long, is the cornerstone of the president's economic playbook. Packed with sweeping fiscal and regulatory moves, it's the GOP's do-or-die priority as they race against a self-imposed Friday deadline.

Lummis' proposed amendment isn't messing around. It's gunning for a de minimis exemption for crypto transactions under $300 and a shakeup in how staking and mining rewards get taxed, syncing them with the point of sale instead of the time of receipt.

Documents spilled to crypto media from Lummis' office lay out the proposal's heavy hitters: a $300 threshold for individual transactions and a $5,000 annual cap on tax-free activity. Boom.

The amendment is also taking aim at what industry warriors call "double taxation," where digital asset holders get hit with taxes when they score staking or mining rewards and then again when they sell those assets. No more, says Lummis.

But wait, there's more! The amendment also tackles tax treatment for crypto lending, wash sales, and charitable contributions. Lummis and her industry allies are on a mission to obliterate outdated tax barriers that have been cockblocking everyday use and long-term holding of digital assets.

Crypto advocacy groups like the Bitcoin Policy Institute and the Solana Policy Institute, along with heavy hitters like Michael Saylor, are all in, publicly backing the amendment.

Matthew Pines, the Bitcoin Policy Institute's executive director, is urging constituents to light up Senate Finance Committee Republicans' phones, demanding support for the measure. He's preaching that a de minimis exemption would "reduce [the] burden, promoting fair compliance and everyday adoption."

Kristin Smith, president of the Solana Policy Institute, is hyping up the amendment's potential to "unlock domestic growth and create jobs" by clearing up the murky waters of staking tax policy.

Over at The Digital Chamber, crypto advocates are calling the proposal a "long overdue fix" to the glaring mismatch between tax policy and economic reality.

"Today, staking and block rewards are taxed upon both acquisition and point of sale. Senator Lummis' provision solves this by taxing rewards only when sold," the group declared in a call-to-action message that's got the crypto community fired up.

But will this crypto-focused amendment make the cut? The jury's still out. The Senate's set to duke it out over numerous proposed changes to the reconciliation bill all week long.

Trump's reportedly breathing down lawmakers' necks, pushing for the final version to hit the streets by July 5. Even if it squeaks through the Senate, the bill's still got to run the gauntlet in the House before landing on the president's desk.

Last year, lawmakers Wiley Nickel and Drew Ferguson took a swing at a similar measure targeting the taxation framework for cryptocurrency staking rewards, but it crashed and burned in the House Ways and Means Committee. Will Lummis' amendment meet the same fate, or will it be the game-changer the crypto world's been waiting for?