US Senate Sets Crypto Tax Hearing for October 1

Senate Gears Up for Crypto Tax Debate

The US Senate Finance Committee is preparing to tackle one of crypto’s most pressing questions: how digital assets should be taxed. On October 1, a panel of industry leaders and tax experts will meet lawmakers in Washington to shape the future of America’s crypto tax rules.

The hearing will be led by Committee Chair Mike Crapo, who has been at the center of efforts to update financial rules for the digital age. According to the official notice, the witness list includes Coinbase Vice President of Tax Lawrence Zlatkin, Coin Center policy director Jason Somensatto, Annette Nellen, chair of the Digital Assets Tax Task Force at the American Institute of CPAs, and Andrea S. Kramer, a lawyer specializing in crypto tax.

This comes as the White House Digital Asset Working Group called in July for tailored rules that recognize crypto as a distinct asset class rather than trying to shoehorn it into outdated systems designed for securities and commodities.

White House Recommendations Shape the Agenda

The July White House report urged lawmakers to modernize tax rules for crypto and pressed regulators to clarify how airdrops, mining rewards, staking, and stablecoin payments should be treated. Without legislation, the Treasury Department and the IRS have been asked to issue detailed guidance.

Currently, the IRS treats crypto and NFTs as property, meaning every sale, transfer, or payment involving them can trigger a taxable capital gain. That framework, critics argue, is far too blunt for a fast-moving industry.

The White House report also stressed that digital assets now play a growing role in global commerce and financial systems, making regulatory clarity essential if the US hopes to retain crypto innovation and talent.

Lummis Pushes Back Against Double Taxation

Crypto’s loudest voice in the Senate, Senator Cynthia Lummis, has long argued that current tax rules punish miners and stakers unfairly. In her words:

Lummis points out that miners and stakers are taxed twice: once when they receive block rewards and again when they sell them. Earlier this year, she attempted to insert a fix into President Trump’s budget reconciliation bill, but the provision failed to make it to the Senate floor.

Still, her advocacy has kept the issue alive, and the October 1 hearing may provide the political momentum needed to finally address double taxation.

A Changing Regulatory Landscape

Crypto rules have moved rapidly since Donald Trump’s return to the White House in January 2025. His administration has prioritized pro-innovation policies, contrasting with what many in the industry saw as regulatory stagnation under President Biden.

With multiple crypto ETFs approved, the GENIUS Act regulating stablecoins passed, and agencies like the SEC considering new safe harbors for token offerings, taxation has become the next critical issue.

Industry leaders argue that without clear, fair tax rules, American crypto firms could lose out to jurisdictions that are more welcoming, from Europe under MiCA to Asia’s fast-growing markets.

What’s at Stake on October 1

The upcoming Senate hearing is set to be a pivotal moment. If lawmakers push for alignment with White House recommendations, Americans could soon see simplified rules for small crypto earnings, better clarity on stablecoin transactions, and relief from double taxation on staking and mining.

The stakes are high. With over 90 million Americans invested in crypto in some form, the outcome could reshape how the US treats digital assets within retirement accounts, everyday payments, and institutional markets.