Cynthia Lummis slams 'flawed' tax rules originally appeared on TheStreet .
Sen. Cynthia Lummis (R-WY) thinks crypto assets, including Bitcoin , are being unfairly targeted because of "flawed tax rules."
Lummis wrote on X on June 10:
We need crypto revisions in reconciliation.
Lummis is a well-known crypto advocate in the U.S. political space who famously introduced the BITCOIN Act that aims to turn Trump's executive order to establish a strategic Bitcoin reserve into legislation. Her latest salvo against crypto tax policy is part of the broader pro-crypto policy pursued by the Trump administration.
In the U.S., the Internal Revenue Service (IRS) treats cryptocurrencies as property for tax purposes. Every crypto transaction, if it incurs gains, is taxed as capital gains by the IRS. While the short-term crypto capital gains tax ranges from 10% to 37%, the long-term crypto capital gains tax is 0%, 15%, or 20%.
Earlier in May, Sen. Lummis proposed re-examining how the 2022 Corporate Alternative Minimum Tax (CAMT) from the Biden era applied to digital asset holdings, forcing crypto companies to pay taxes on unrealized crypto gains.
However, the Wyoming senator has also taken a step in the direction of rescinding the exemption of the wash sale rule to crypto assets.
A wash sale refers to a situation where, if you believe your crypto holding — which has dropped in value — might rebound soon, you sell it to realize a loss, then buy it back within 30 days, expecting to benefit from the future price increase.
Since the IRS doesn't view crypto as security, the wash sale rule doesn't apply to it. But Lummis recently made an effort to the upcoming tax-and-spending bill to apply the wash-sale rule to crypto. The proposal also urged exempting Bitcoin miners from reporting gains and losses.
Crypto tax reporting remains a complex issue in the U.S. and the world, and the evolving status of the crypto assets makes it more complicated.
Cynthia Lummis slams 'flawed' tax rules first appeared on TheStreet on Jun 10, 2025
This story was originally reported by TheStreet on Jun 10, 2025, where it first appeared.
