The U.S. Senate has narrowly passed President Donald Trump’s ambitious federal budget bill — but without the inclusion of a proposed crypto tax provision, dashing short-term hopes for regulatory clarity and relief within the digital asset sector.
No Crypto Amendment in the Senate’s Budget Vote
Despite last-minute lobbying efforts by the crypto industry, Senator Cynthia Lummis’s proposed crypto tax reform was not among the amendments voted on during the late-night Senate session. Her amendment had aimed to:
- Waive capital gains taxes on small cryptocurrency transactions.
- End double taxation on crypto earned through mining, staking, or airdrops.
- Introduce rational guidelines for retail crypto use and digital asset accounting.
The budget bill — dubbed the “One Big Beautiful Bill” — passed on a 50-50 Senate vote, with Vice President J.D. Vance casting the tie-breaking vote. While several other amendments were debated, Lummis’s proposal didn’t make the final cut, pushing the conversation back to standalone legislative channels.
Crypto Sector Disappointed, but Not Defeated
The crypto community viewed Lummis’s effort as a critical step toward fair tax policy for digital assets. Her initiative had gained momentum among advocates of blockchain innovation, who argue the current tax system penalizes crypto adoption through outdated rules and unclear guidelines.
Although excluded from the broader bill, Lummis has previously indicated plans to reintroduce the measure independently. The proposal’s core elements align with ongoing efforts in Congress to modernize U.S. crypto regulations — a topic expected to remain a legislative priority in the months ahead.
What’s Next for Trump’s Budget and Crypto Policy?
The Senate’s version of the budget bill now heads to the House of Representatives, where fierce debate is expected. The original House version barely passed earlier in June, and the Senate’s adjustments — notably lacking crypto provisions — could become a flashpoint for further discussion.
Trump’s budget proposal includes sweeping changes, including:
- Massive infrastructure and defense spending.
- Border security reinforcements.
- $3 trillion projected deficit increase.
- Major tax relief for corporations and high-income earners, according to critics.
U.S. Treasury Secretary Scott Bessent urged swift House action, stating it was time to “deliver on President Trump’s promises to power the future of our economy.”
Democrats Push Back, Warn of Corporate Favoritism
Opposition voices, especially from Senator Elizabeth Warren, sharply criticized the bill’s focus. In a letter to Big Tech leaders like Amazon, Apple, and Meta, she accused them of leveraging political donations to win tax favors, saying:
“Your lavish political spending appears to be bearing fruit, and everyday American families will pay the price.”
Crypto Tax Reform Delayed, Not Denied
While the crypto tax amendment didn’t survive the Senate budget process, its absence underscores the challenge of navigating digital asset policy through broad, partisan legislation. The focus now shifts back to standalone bills and bipartisan advocacy.
The digital asset industry remains cautiously optimistic that regulatory clarity, especially on taxation, will still emerge — just not as part of this budget cycle.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.