Senator Cynthia Lummis revealed on June 30 that she would introduce an amendment to add crypto tax language to the “One Big Beautiful Bill” (OBBB) amid pushes from crypto advocates in the same direction.

Lummis posted on X that she is drafting an OBBB amendment “to ensure Americans can use digital assets without fear of tax violations.” She added: 

“For years, miners and stakers have been taxed TWICE. Once when they receive block rewards and again when they sell it. It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower.” 

The proposal revives earlier bipartisan efforts to exempt small gains on everyday transactions. 

Matthew Pine, executive director of the Bitcoin Policy Institute, asked supporters to email or call senators and request “a narrowly tailored Bitcoin de minimis tax exemption.” 

According to Pine’s suggested script, the current rules require users to compute capital gains on minor purchases, a record-keeping burden that “discourages fair compliance and everyday adoption.”

Timing of taxation for block rewards

Dennis Porter, chief executive of the Satoshi Action Fund, focused 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 echoed the appeal, 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, amplified the message 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.

Mentioned in this article

In a recent keynote address delivered on MIT Bitcoin Expo, Strategy (NASDAQ:MSTR) CEO Phong Le boldly put Bitcoin as a core component of modern corporate financial strategies. With over 528,000 BTC on the balance sheet, the strategy has become the most visible and perhaps the most successful public company.

“We outperformed the entire Nasdaq, the entire S&P 500, the entire Mag Seven, and we outperformed the Bitcoin.” Le told the audience.

Strategy Chair Michael Saylor laid the philosophical foundation for Bitcoin’s corporate use cases in 2020, while Le’s keynote drove execution and financial results. The talk was part of a challenge and part of a case study, which prompted corporate leaders to question everything from education to financial assumptions and rethink their balance sheets in the Bitcoin era.

Companies are not performing. Bitcoin offers exit

On the first day of the MIT Bitcoin Expo, Le opened with a breakdown of performance issues for American companies. Of the 35 million US companies, only the top tier of the S&P 500 companies, mainly meets market expectations. The rest is stagnant. “Almost every other company is not performing.” Le said.

He pointed his finger at the confirmed financial orthodox. MBA programs, elite consultants, and Wall Street companies continue to teach the same playbook. Optimize your profit and loss statement, reinvest in traditional assets, and stick to quarterly thinking. This results in systematic inperformance. “All they can do is the S&P 500.” He said private equity, venture capital and even hedge funds rarely beat their benchmarks.

Le’s paper: It’s not a lack of talent, it’s a lack of imagination.

Strategy Bitcoin Playbook: From Cash Drugs to Digital Capital

He argued that what set the strategy apart was the decision to treat the balance sheet as a strategic asset rather than a passive asset. Most companies park cash on products like low-yielding government bonds or gold, but the strategy has opted for Bitcoin.

“Why, if you’re a company, why wouldn’t you do the same? You’ll make money from your balance sheet. It makes sense.”

Le argued that Bitcoin not only returns potential, but also offers structural advantages. It trades 24/7 and provides businesses with immediate global liquidity, not subject to central bank policies. In contrast, it is run by traditional capital markets “252 days a year, 6.5 hours per day – 19% of the time.”

The strategy fully embraced this and updated the Bitcoin Reserve in real time. “We show results every day. In fact, we update them every 15 seconds on our website.” Le said.

Rethinking accounting in the native world of Bitcoin

One of the biggest challenges for companies adopting Bitcoin is the discrepancy between traditional accounting rules and assets 24/7. The current standard was built for quarterly revenue and slow moving financial products. It is not a digital asset that is traded worldwide, not in real time.

As Phong le said: “Accounting policy is updated every five years, but in Quinkens. Accounting policy does not work with Bitcoin.”

Under GAAP, Bitcoin is treated as an intangible asset that is marked when prices fall but not adjusted upwards when they rise.

To fill that gap, the strategy employs a more transparent approach. “We show results every day. In fact, we update them every 15 seconds on our website.” Le said. This real-time report reflects the ever-occurring nature of Bitcoin, reflecting the signal to the market that its strategies are being played by a faster set of rules.

Rather than waiting for the institution to catch up, the strategy sets the standard for how to measure the performance of Bitcoin finance companies.

Why were MSTR stocks most viewed on the US market?

Since adopting Bitcoin’s financial strategy, MSTR stocks have been “Most Performance, Most Volatile, Best Volume, and Most Interesting Stock in the US.” According to Le. Its performance consistently outperforms traditional benchmarks, not just because Bitcoin was valued, but because its strategy was rooted in its identity as a native Bitcoin public company.

And it’s not alone. Le highlighted the growth list of companies replicating the model, Metaplanet, Semler Scientific, and Kulr Technology Group. All of these were better than the S&P 500 and Bitcoin after adopting a similar financial strategy. “This is a replicable strategy.” Le said. “Everyone else should do this.”

Breaking the mold: Corporate appeal for courage

Le has been shut down by challenging executives and investors to question traditional wisdom. The success of the strategy wasn’t because of chasing the crowd. It came from rejecting it.

“It takes courage. It requires independent thinking. It requires independent thinking. It requires courage. It requires Bitcoin.”

As the first public company to turn Bitcoin into a balance sheet foundation, Michael Saylor’s vision and von Le’s leadership strategy redefine what is possible in corporate finance.

Or, like I said that: “Bitcoin allows businesses to find freedom from the average.”

Disclaimer: This content was written on behalf of Bitcoin for businesses. This article is for informational purposes only and should not be construed as an invitation or solicitation to acquire, purchase, or subscribe to any securities.

US Securities and Exchange Commissioner (SEC) Hester Peirce has recently emphasized the need for a shift in the regulatory approach towards crypto, signaling a departure from the aggressive enforcement strategies of the past years. 

In a recent interview on “Bloomberg Crypto,” Peirce discussed the SEC’s ongoing review of its enforcement actions against crypto firms, highlighting the atypical use of enforcement cases to shape regulatory policy.

SEC’s Hester Peirce Advocates For Policy Reform 

“During the past several years, enforcement cases have been used as a way to make regulatory policy; that is very atypical,” Peirce stated. “We’re trying to get back to a path where we’re really using our other tools to make policy.” 

The SEC’s recent request to pause litigation against Binance, the world’s largest cryptocurrency exchange, further illustrates this shift. The commission had previously sued Binance and its co-founder, Changpeng “CZ” Zhao, in 2023, alleging that the platform mishandled customer funds and violated securities laws. 

The SEC is now seeking a 60-day stay in the lawsuit, citing the ongoing development of a regulatory framework for digital assets. Peirce refrained from commenting on the potential outcomes of the lawsuit, emphasizing the need for a case-by-case evaluation.

Peirce is now leading a crypto-focused task force within the SEC aimed at developing a “comprehensive and clear” regulatory framework. Among her objectives are determining which digital assets qualify as securities and identifying areas that fall outside the SEC’s jurisdiction. 

Peirce’s previous efforts have garnered praise from the digital-asset community, particularly for her support of Bitcoin exchange-traded funds (ETFs) and her dissenting opinions on various SEC enforcement actions, earning her the nickname “Crypto Mom.”

Congressional Inaction Leaves Crypto Classification In Limbo

Historically, the SEC’s aggressive stance on crypto regulation has been exacerbated by Congress’s inability to pass legislation that clearly defines cryptocurrencies as either securities or commodities. 

This lack of clarity has led to confusion and legal challenges, including a significant court ruling that rejected the SEC’s classification of XRP as an alleged security instead of a commodity as in Bitcoin’s case.

Help may be on the horizon, as bipartisan legislation like the FIT21 bill aims to delineate the respective jurisdictions of the SEC and the Commodity Futures Trading Commission (CFTC) over digital assets. Additionally, another proposed bill seeks to establish a special status for stablecoins.

Peirce had previously acknowledged the “legal imprecision and commercial impracticality” that has characterized the SEC’s approach since it first applied the Howey test to cryptocurrencies in 2017. 

This environment has resulted in slow litigation processes and hindered rulemaking, leaving many crypto projects in limbo. Looking ahead, Peirce stressed the importance of focusing on fraud and misconduct while also anticipating a rise in applications for regulatory relief and no-action letters. 

She underscored the necessity of diligent practices during this transitional period to ensure that regulatory clarity is achieved for the evolving digital assets market.

Featured image from DALL-E, chart from TradingView.com