Michaela
Wyoming Senator Cynthia Lummis has urged reform of the current crypto tax policy, noting that Bitcoin and other digital assets have been unfairly impacted by flawed tax regulations.
“Bitcoin and digital assets are being unfairly targeted because of flawed tax rules. We need crypto revisions in reconciliation,” Senator Lummis wrote in a June 10 X post.
Senator Lummis, often dubbed Congress’s “Crypto Queen,” has taken a leading role in advancing cryptocurrency policy through her introduction of the BITCOIN Act. This legislation seeks to formalize President Donald Trump’s executive order by establishing a strategic Bitcoin reserve at the federal level.
At the 2025 Bitcoin Conference, Senator Lummis outlined her proposed crypto tax framework, revealing that her office has already presented a comprehensive plan to the Senate Finance Committee.
In a May 12 letter, Senator Lummis and Bernie Moreno urged Treasury Secretary Scott Bessent to reconsider the current definition of “adjusted financial statement income” under U.S. law. They emphasized the Treasury’s authority to amend this interpretation to reduce the tax pressures on digital asset firms and encouraged Bessent to exercise this power.
In the United States, the Internal Revenue Service (IRS) classifies cryptocurrencies as property, meaning that any profitable crypto transaction is subject to capital gains tax. Short-term gains, profits from assets held less than a year, are taxed at ordinary income rates ranging from 10% to 37%, depending on the taxpayer’s bracket. Long-term gains, for assets held over a year, benefit from reduced rates of 0%, 15%, or 20%, offering some tax relief to long-term crypto investors.
As debates over crypto taxation continue, lawmakers and industry experts alike emphasize the need for clearer, more balanced policies that reflect the evolving nature of digital assets. With blockchain technology rapidly advancing and adoption growing, tax frameworks must adapt to encourage innovation while ensuring fair compliance.
The outcome of these discussions could significantly shape the future landscape of crypto investment and business operations in the U.S., making it crucial for stakeholders to remain engaged in the legislative process. How policymakers respond will determine whether the country can foster a thriving digital economy that benefits all participants.
Read More
- Sen. Cynthia Lummis Revives BITCOIN Act to Build US Crypto Reserve
- Global Bitcoin Reserves Shrink as Governments Hold Over 463K BTC
- Crypto Tax Strategies for Financial Independence
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
