During the Bitcoin Conference 2025, Senator Cynthia Lummis reopened an open wound regarding the double taxation imposed on Bitcoin miners.
The problem of double taxation on Bitcoin
Bitcoin miners and other participants in the digital ecosystem are facing a serious issue of double taxation in the United States. As highlighted by Senator Lummis, those involved in mining are taxed twice: first, at the time of receiving the block rewards (that is, the rewards in Bitcoin obtained from validating transactions on the blockchain) and, subsequently, upon the sale of the accumulated assets. This dynamic creates a significant financial burden, especially considering that the value of Bitcoin can change rapidly between the time of receipt and the time of sale.
Furthermore, the fiscal complexity associated with this double taxation results in higher bureaucratic costs, potentially reducing the profitability of mining activities and discouraging innovation in the U.S. cryptocurrency sector.
The legislative causes: the legacy of the Infrastructure Investment and Jobs Act
The origins of the problem lie largely in the regulations introduced by the Infrastructure Investment and Jobs Act of 2021. This legislative measure, created to regulate the world of cryptocurrencies, introduced an extremely broad definition of “broker.” According to this definition, not only traditional intermediaries but also miners, developers, and participants in decentralized platforms (DeFi) must comply with strict tax reporting obligations.
These obligations include the collection and transmission of data on transactions and user identity, tasks that often prove unfeasible for those operating in a non-custodial manner, meaning without direct management of user funds. Such compliance requests expose miners and developers to potential sanctions and have already had the effect of stifling innovation and investment in the crypto sector in the United States.
The activism of Senator Lummis and the requests for modification
Cynthia Lummis has emerged as one of the leading voices in favor of a regulatory review on Bitcoin and cryptocurrencies. During the 2025 Bitcoin Conference, Lummis reiterated the need for an urgent reform of digital taxation — and beyond — calling for the use of the budget reconciliation process to advance these amendments. Such a process would allow for faster parliamentary action compared to the normal legislative process.
The stated goal of Lummis is to redesign the definition of “broker”, expressly excluding miners and developers from excessive tax obligations. In this way, the double tax burden on block rewards would be reduced, compliance procedures would be simplified, and greater regulatory certainty would be ensured for those developing innovation in the blockchain.
The expected economic impacts and the attractiveness for investors
According to the senator, aligning American tax regulations with the peculiarities of Bitcoin and blockchain technologies would create more equitable and favorable conditions for industry operators. This would not only reduce compliance costs but also encourage the growth of institutional investments thanks to clearer and more stable rules.
Consequently, the reform advocated by Lummis would have a direct impact on the vibrancy of the U.S. crypto ecosystem, stimulating international competitiveness in the field of digital technologies. At the same time, it would allow the country to strengthen its position against rapidly developing foreign competitors.
The political debate on the regulation and the future of Bitcoin in the United States
The request for riforma occurs in a context of growing institutional attention towards cryptocurrencies. The rapid development of digital assets has raised concerns regarding financial stability, consumer protection, and national security. Consequently, an increasingly broad audience of legislators and stakeholders considers a clear and effective regulatory framework essential, but not one that penalizes innovation.
In concrete terms, Lummis’s proposal is part of a broader movement aimed at the modernization of the U.S. tax code, to adapt it to the challenges and opportunities of the new digital economy. Rethinking the taxation of Bitcoin therefore means supporting sustainable economic growth and positioning the United States as global leaders in the adoption of advanced technologies.
The importance of regulatory clarity for the development of cryptocurrencies
The approach supported by Lummis aims to find a balance between regulatory control and promotion of innovation. While ensuring transparency and compliance with rules remains fundamental, it is equally essential that such policies do not stifle the creativity and dynamism typical of the digital economy.
The proposal of the senator has been received with interest both by industry associations and by various political figures. The elimination of double taxation on block rewards, combined with the simplification of requirements for miners and developers, would make the American market more attractive and competitive — a key advantage in a global scenario that is constantly evolving.
Prospects for Bitcoin and the digital market according to the Lummis proposal
The prospects opened by the reform advocated by Lummis have the potential to profoundly transform the fiscalità di Bitcoin in the United States. Revising the regulations means breaking down barriers still responsible for the flight of talent and projects to other more favorable markets. Ultimately, clarifying the regulatory position would also improve the confidence of new players and investors, encouraging the emergence of innovative initiatives.
However, it remains to be seen how Congress will address these requests for change. The debate remains open and lively, a sign that the regulation of Bitcoin now influences players well beyond the world of cryptocurrencies, involving the entire economy linked to digital transformation.
A new horizon for Bitcoin thanks to the tax reform?
The initiative by Cynthia Lummis to eliminate double taxation on Bitcoin constitutes a crucial step for the competitive future of the United States in the era of digital assets. If approved, the reform could reshape the fiscal framework, foster sector growth, and protect innovation. Those closely following the world of cryptocurrencies, blockchain technologies, and institutional investments should closely monitor the evolution of this debate and the decisions of Congress, which are crucial for the future of the sector.
