Senate Passes Trump Bill Without Crypto Tax Relief Amendments

President Donald Trump's expansive tax and spending package, titled “One Big Beautiful Bill,” was passed by the Senate without including key amendments aimed at crypto tax relief proposed by Senator Cynthia Lummis. The bill, which encompasses a wide range of budgetary and fiscal measures, was approved with a tie-breaking vote cast by Vice President J.D. Vance. This decision has significant implications for cryptocurrency stakeholders across the U.S., as the proposed amendments intended to end double taxation on crypto rewards and improve tax measures for digital assets were not included.

Senator Lummis, a longtime advocate for crypto tax reform, expressed disappointment over the omission of her amendments. She highlighted the ongoing challenges of double taxation on crypto miners and stakers, stating that "For years, miners and stakers have been taxed TWICE. Once when they receive block rewards, and again when they sell it." The crypto market exhibits cautious sentiment in response, with traders and exchanges anticipating potential compliance shifts had the amendments passed. The absence of tax relief provisions could deter retail and institutional involvement, as taxation on activities like staking and airdrops remains unchanged.

Immediate effects on the crypto market are evident as the omission of Lummis' amendments influences trader behavior and investment outlooks. The unchanged tax landscape presents challenges for those engaging in mining, staking, and crypto trading. Without tax relief, the bill’s passage perpetuates existing financial constraints on the crypto ecosystem, highlighting a lack of regulatory clarity and keeping taxation of digital assets in a complex and burdensome state. Market reaction to the bill’s passage points to a call for continued efforts towards regulatory clarity and tax reform. Historical data suggests that legislative changes, such as those proposed by Lummis, can alter market behavior significantly when enacted. In the absence of these changes, crypto stakeholders can anticipate ongoing discussions and lobbying for dedicated crypto tax bills in upcoming legislative sessions. The passage of Trump's bill without crypto provisions underscores the ongoing regulatory challenges facing the digital asset market.

Despite the setback, Senator Lummis acknowledged the importance of continuing her work with Senator Mike Crapo, the Senate Finance Committee Chairman, to address crypto tax treatment in future legislation. Her office stated that productive conversations had taken place with Chairman Crapo and other committee members, and that efforts would continue to fix these important tax issues at a later date. However, no specific timeline was provided for when these issues might be addressed. As the bill moves forward to the House of Representatives and potentially to the President's desk, the crypto industry will be closely watching for any further developments that could address these tax concerns.