Congress’ Budget Bill Advances From Senate Without Crypto Tax Provision
The U.S. Senate passed a comprehensive spending bill, largely reflecting President Trump’s policy agenda, despite last-minute lobbying efforts from the digital asset industry. A key proposal championed by Senator Cynthia Lummis to clarify and simplify cryptocurrency taxation, including waiving capital gains taxes on small-scale transactions, failed to be included in the final version. The bill, dubbed the “One Big Beautiful Bill,” passed by a narrow 50-50 margin, requiring Vice President J.D. Vance’s tie-breaking vote after an all-night Senate session. While numerous amendments were debated, Lummis’s amendment, aimed at rationalizing the U.S. tax system and addressing perceived double taxation on crypto, ultimately failed. Her office has not yet commented on the matter, indicating that her efforts to reform crypto taxation will likely continue through separate legislation.
This sweeping legislative package, projected to increase the national budget deficit by over $3 trillion, now faces a potentially contentious House of Representatives vote. The House will review and debate the Senate’s amendments before a final decision. Senate Majority Leader John Thune celebrated the bill’s passage, emphasizing the tax relief for Americans, military rebuilding, border security enhancements, and the intended boost to the U.S. energy sector. Treasury Secretary Scott Bessent urged House Republicans to swiftly approve the bill to fulfill President Trump’s economic promises and maintain the U.S.’s standing as a global leader in capital and innovation.
The bill’s passage has drawn sharp criticism from Senator Elizabeth Warren, who accused major tech companies of leveraging political spending to secure substantial tax breaks at the expense of American families. In a letter to CEOs of Amazon, Meta, Apple, and other tech giants, Senator Warren highlighted the significant political contributions made by these companies and suggested a direct correlation between these contributions and the tax breaks included in the bill. The bill’s long-term economic impacts and the ongoing debate surrounding crypto taxation remain significant areas of focus.
