Senator Lummis Warns: Outdated Tax Laws Threaten Bitcoin and DeFi Innovation

Senator Cynthia Lummis has once again raised her voice in defense of crypto innovation, warning that outdated and unfair U.S. tax rules are harming Bitcoin miners and DeFi users. According to Lummis, the current laws—written for traditional finance—don’t fit the decentralized nature of digital assets and are holding back American blockchain innovation.

Bitcoin miners are reportedly being taxed twice—once when they receive mining rewards and again when they sell the coins. Meanwhile, DeFi users could be taxed on every small transaction, even if it results in no real profit.

To fix this, Lummis is urging Congress to use the reconciliation process to pass new rules swiftly. She is also promoting the BITCOIN Act, which would make Bitcoin an official part of America’s long-term financial strategy.

Lummis revealed that her office has already started discussions with the Senate Finance Committee. These efforts come as other crypto-focused legislation such as the GENIUS Act and the CLARITY Act are gaining traction in Congress. If successful, Lummis’s proposals could finally bring fair tax treatment to the U.S. crypto sector.