Cynthia Lummis’ Crypto Tax Break: Is This the Lifeline Bitcoin Miners Have Been Waiting For?

Bitcoin miners battered by energy costs and regulatory headwinds might finally catch a break—if Washington’s latest crypto tax play delivers.

The Lummis-Gillibrand bill’s proposed exemptions could slash operational burdens for an industry that’s been running on fumes. But will it move the needle, or just give Wall Street another loophole to exploit?

Here’s the breakdown:

The Mining Math

Current tax code treats mining rigs like luxury yachts—punitive depreciation schedules meet brutal energy reporting requirements. The new framework? Potentially game-changing.

Energy Angle

With post-halving margins razor-thin, miners are hemorrhaging cash. Tax relief could flip unprofitable operations back into the black overnight.

The Catch

Watch for the fine print. DC giveth, but SEC taketh away—especially if miners get reclassified as securities dealers under ongoing enforcement sweeps.

Bottom line: This isn’t a bailout. It’s a stopgap for an industry that still needs to innovate its way out of the red. Because when has relying on Congress ever been a sustainable business model?

“Miners and stakers are being taxed twice”

Lummis decried the current tax regime for ‘double taxation’ of crypto, miners, and validator operators. She stated, 

“For years, miners and stakers have been taxed TWICE. Once when they receive block rewards, and again when they sell it.”

She added that it’s “time to stop unfair tax treatment” to achieve President Donald Trump’s vision of making America the world’s BTC and crypto superpower. 

For perspective, currently, the U.S. Internal Revenue Service (IRS) treats mining, staking, crypto payment receipts, and airdrops as ordinary income and subject to the typical income tax rate.

Typical usage like buying a coffee via crypto could trigger a taxable event. 

On top of that, selling the same assets later incurs capital gains tax—effectively taxing users twice. Lummis’ proposal aims to flip that model: tax only at the point of sale, not on use or receipt.

Saylor steps in: “End it now”

Michael Saylor, founder of Strategy (formerly MicroStrategy), the leading pioneer in BTC corporate treasury, echoed her stance and said, 

“We must end unfair taxes on BTC miners if America is going to be the world’s bitcoin superpower.” 

In May, Lummis advocated for the dismissal of Biden-era crypto tax rules that WOULD force crypto firms to pay taxes even if unprofitable. 

Some top crypto advocacy groups backed Lummis’ tax proposal. Coinbase-linked Stand With Crypto urged Congress to ensure Americans use crypto like cash. 

Source: Stand With Crypto/X

For her part, Summer Mersinger, CEO of Blockchain Association, a collective voice for the crypto sector, said, 

“By adding the Lummis tax amendment to the Big Beautiful Bill, the Senate can create more fairness and long-term sustainability in our industry.”

The amendment isn’t law yet. But if passed, it would overhaul the way crypto taxes work in the U.S., ending the double taxation on staking and mining rewards and potentially making small everyday crypto payments tax-free.