Crypto News: US Senate Finance Committee to Hold Hearing on Crypto Taxation Next Week

Key Takeaways:The US Senate Finance Committee will hold a hearing on crypto taxation next Wednesday.Witnesses include Coinbase VP of Tax Lawrence Zlatkin, Coin Center’s Jason Somensatto, and other tax experts.The session follows the White House’s July report, which called for clearer digital asset tax rules.Senator Cynthia Lummis continues to push against what she calls “unfair double taxation” for miners and stakers.The US Senate Finance Committee will meet next week to examine how digital assets should be taxed, aligning with the White House’s recent push for updated crypto regulations.The hearing, scheduled for Wednesday, will be chaired by Senator Mike Crapo. Testifying before the panel are Lawrence Zlatkin, Coinbase’s vice president of tax, and Jason Somensatto, policy director at Coin Center, alongside other tax specialists.The committee will also hear from Annette Nellen, chair of the Digital Assets Tax Task Force at the American Institute of CPAs, and Andrea S. Kramer, a founding member of ASKramer Law with expertise in crypto tax issues.White House Calls for Tailored Crypto Tax GuidanceThe July White House Digital Asset Working Group report urged Congress to recognize digital assets as a new asset class and to create tailored tax rules. If lawmakers fail to act, the report recommends that the Treasury Department and IRS issue guidance on areas like stablecoin payments, airdrops, mining, and staking rewards.Currently, the IRS treats crypto and NFTs as property, meaning each transaction can trigger a taxable event if it results in a profit.Lummis Pushes to End Double Taxation of MinersSenator Cynthia Lummis has raised concerns over what she calls “unfair tax treatment” of miners and stakers, who face taxes both when they receive block rewards and when they later sell them.“It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower,” Lummis said in June.While Lummis attempted to insert a fix into Trump’s July budget reconciliation bill, the provision did not make it into the final legislation.