Senator Lummis Drops OBBB Crypto Tax Bombshell—Advocates Rally for Game-Changing Approval

Crypto just got a political adrenaline shot. Senator Cynthia Lummis just unveiled the OBBB amendment—a potential watershed for digital asset taxation. The proposal could rewrite the rulebook for crypto investors, miners, and DeFi protocols.

Behind the scenes: Advocacy groups are mounting a full-court press for passage. Backchannel talks with Treasury officials suggest the amendment might dodge the usual bureaucratic quicksand. But skeptics whisper it’s just another DC carve-out for the ‘crypto bro’ elite.

Why it matters: Clear tax rules could finally lure institutional capital off the sidelines. Or—in classic government fashion—create a labyrinthine compliance nightmare that only Big Four accountants can navigate.

Timing of taxation for block rewards

Dennis Porter, chief executive of the Satoshi Action Fund,his outreach on mining and proof-of-stake earnings. 

He told callers to explain that those rewards “are taxed once as ordinary income when they’re created, then again as capital gains when they’re sold.” 

Porter’s proposed fix WOULD tax rewards only at disposition, aligning them with self-generated property such as farm produce. 

Colin McLaren of the solana Policy Institute, stating that Congress and the Senate Finance Committee “need to clarify key digital asset tax issues around staking” and should incorporate Lummis’s language to “unlock the future of innovation.”

Lobbying coordination intensifies

Cody Carbone, CEO of the Digital Chamber lobbying group,in a post.

He said that taxes on block and staking rewards should be applied at sale instead of creation, adding that legislation should treat these rewards as “created property.”

Carbone’s call added the Digital Chamber’s membership to a coalition that now includes bitcoin policy advocates, proof-of-stake supporters, and general crypto trade groups. All scripts emphasize courtesy and brevity when speaking with congressional offices.

Supporters view this week’s committee negotiations as a narrow window to attach digital asset provisions before the bill reaches the Senate floor. 

They argue that the combined de minimis exemption and block reward timing fix would streamline individual reporting, reduce compliance costs, and keep validation activity in the US. 

Senate staff have not released the draft text, and negotiators have not indicated whether the two issues will be advanced together or separately.