Senator Cynthia Lummis (R-Wyo.) is taking a lead role in reshaping how digital assets are taxed in the United States. She is working with Senate Finance Chair Mike Crapo (R-Idaho) to embed key crypto-focused tax reforms into the Senate Republicans’ 2025 tax-and-spending package.
At the center of her efforts is a proposal to apply the wash-sale rule to cryptocurrencies. This would prevent investors from getting a tax advantage from selling crypto at a lower value and then repurchasing it. For now, this approach is allowed because the law does not include digital assets in the wash-sale rule.
According to Lummis, this bill is the best route for resolving the tax loophole she believes it addresses. On the other hand, Senator Kirsten Gillibrand (D-N.Y.) and others have pointed out that the process is moving too fast. The senator argued that this step was too hasty and could unintentionally cause trouble because guidelines are still unclear.
Also Read: Whale Moves 2.86 Trillion SHIB to Coinbase—Is a Massive Dump Incoming?
Crypto Miners May Benefit as Lawmakers Debate Reporting Burdens
Another major piece of Lummis’s proposal would benefit Bitcoin miners by removing the requirement to report capital gains and losses on newly mined coins. This provision aims to simplify the tax process for miners, who often struggle with unclear reporting rules. Supporters argue that easing these burdens could help the industry grow while making compliance more straightforward.
Senators who view the changes as too favorable to the crypto sector are expected to oppose them. Critics are also considering whether it might affect taxes at a time when lawmakers are examining the main parts of the federal tax system.
At the same time, the overall tax bill is still being worked on. After getting involved, President Trump talked with members of the Senate Finance Committee last week. Senator Bill Cassidy (R-La.) said that Trump insists on including extra features such as working account benefits, which complicates the bill.
Since the tax cuts expire in 2025, Lummis has ensured digital asset policy leads this important legislative discussion. Her proposals might clarify taxing cryptocurrencies, yet they must overcome obstacles from a divided Senate.
Also Read: XRP’s Big Moment: Analyst Explains Why XRP Will Displace SWIFT Forever
