Bitcoin is facing increasing pressure under the current U.S. tax framework, according to Senator Cynthia Lummis. The senator has called for urgent revisions, claiming that outdated and overly broad rules are harming Bitcoin users and stifling blockchain innovation. Her criticism comes amid a renewed push for crypto-focused legislation in Congress.
Senator Lummis Calls Bitcoin Tax Rules Flawed
Senator Cynthia Lummis posted on X to criticize the U.S. crypto tax regime. She stated that Bitcoin and digital assets are unfairly targeted due to flawed regulations. Her remarks reflect ongoing industry concerns over the rules set by the Infrastructure Investment and Jobs Act of 2021.
This legislation categorized a wide range of crypto participants, including miners and developers, as brokers. Under the law, these entities must collect and report transaction data that they often cannot access. These include names, addresses, and transaction amounts.
According to Senator Lummis, these rules impose unnecessary burdens on those who secure blockchain networks or build decentralized tools. She has called for changes to the tax code that would more accurately define roles within the crypto ecosystem.
Bitcoin and digital assets are being unfairly targeted because of flawed tax rules. We need crypto revisions in reconciliation.
— Senator Cynthia Lummis (@SenLummis) June 10, 2025
Bitcoin Miners Face Heavy Tax Burden
Miners are among the hardest hit by current tax laws. Under existing IRS guidance, they may be taxed on newly mined coins as income and again as capital gains upon sale. This dual taxation model raises concerns of fairness and practicality.
Many developers and node operators, who do not control or monitor transactions, also struggle with compliance. They argue that meeting these reporting requirements is technically impossible.
This tax framework has created uncertainty for firms operating in the space. Industry groups argue that the current classification system discourages innovation and investment in blockchain infrastructure.
Push for Tax Code Reform Through Reconciliation
Senator Lummis has proposed using the budget reconciliation process to amend the crypto tax rules. This method allows certain bills to pass the Senate with a simple majority, bypassing the usual 60-vote threshold.
She said, “We need crypto revisions in reconciliation,” emphasizing the urgency of addressing these tax issues. The goal is to narrow the definition of “broker” to exclude miners, validators, and developers who do not facilitate crypto trades.
Her call comes as several crypto bills are moving through Congress. These include the GENIUS Act and CLARITY Act, which aim to provide a regulatory framework for digital assets. In parallel, a bill to formalize the U.S. Bitcoin Reserve strategy has also been introduced.
Crypto Industry Watches Washington Closely
As lawmakers continue to debate regulatory reform, industry participants are closely monitoring legislative developments. The outcome of these efforts could reshape the rules governing digital assets for years.
Bitcoin’s price continues to rise, with the asset hitting a new high of $111,970. This growth has added urgency to tax reform discussions, as more investors enter the crypto space.
Market analysts believe that regulatory clarity could help stabilize the industry. However, without changes to current tax policy, concerns over compliance burdens are likely to persist.
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