Senator Lummis advocates for improved taxation of Bitcoin
In a significant development for the cryptocurrency industry, Senator Cynthia Lummis has submitted an amendment aimed at promoting Bitcoin and other cryptocurrencies as payment methods and strengthening the U.S. mining industry. This move is part of a broader pro-crypto vision by the U.S. government, as demonstrated by the "Reconciliation Bill."
The "Reconciliation Bill," a tax and spending bill demanded by U.S. President Donald Trump, is currently up for a vote in Congress. If the bill, including Lummis' amendment, passes the Senate, the House of Representatives would still need to approve it.
Lummis' amendment proposes tax relief around Bitcoin and cryptocurrencies. It suggests that the received crypto values should only be taxed when the companies sell them, addressing the issue of double taxation on profits from blockchain validation. Moreover, crypto payments up to $300 will not be taxed, with a limit of $5,000 per year. This amendment particularly applies to Bitcoin mining companies, which are taxed both when they receive "block rewards" and when they sell the coins.
The White House is reportedly supporting Lummis' amendment, with Vice President JD Vance also making comments about a potential U.S. Bitcoin reserve. This endorsement is significant as it reflects bipartisan momentum and influential industry backing, potentially marking a transformative moment for U.S. Bitcoin policy.
Trump himself has emphasized that the US dollar could benefit from Bitcoin, and during his campaign, he expressed his desire for all future Bitcoin to be mined in the USA. Renowned crypto journalist Eleanor Terrett has shared that she heard the White House is pushing for Lummis' proposal to be included in the final bill.
Tristan, the Editor-in-Chief at Blocktrainer.de, with a degree in economics and journalistic experience outside the Bitcoin sphere, has been actively involved with Bitcoin since 2020, having previously explored libertarian economic theory. The American crypto policy group "Stand With Crypto" has declared its support for Lummis' Bitcoin and cryptocurrency advancement bill, the BITCOIN Act. This bill proposes creating a U.S. Strategic Bitcoin Reserve by acquiring one million BTC over five years.
However, it seems unlikely that lawmakers will reach a final agreement on the "Reconciliation Bill" by this Friday's "Independence Day." Critics argue that the bill will exacerbate the federal deficit and the national debt of the United States. Michael Saylor, founder of Strategy, supports this idea and emphasizes the importance of fair tax treatment for the USA to become the "Bitcoin superpower."
The bill proposed in the U.S. State of Texas involves creating a Bitcoin reserve as well. As the developments unfold, the future of Bitcoin and cryptocurrencies in the U.S. is shaping up to be an exciting and transformative journey.
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