Senate Passes Trump Budget Bill, Leaving Crypto Taxes Unchanged

The US Senate has passed President Trump's budget bill, a significant piece of legislation that has far-reaching implications for various sectors, including cryptocurrency. The bill, which was the result of an all-night session, marks a crucial step towards the president's agenda. However, one notable absence from the bill is any provision related to crypto taxes.

During the debate, Wyoming Senator Cynthia Lummis suggested adding a provision to address what she called “unfair tax treatment” of cryptocurrency. This included new tax provisions on crypto staking rewards, de minimis capital gains exemptions, and other perks. These provisions, if included, could have significantly altered the landscape for crypto investors and users. However, hopes for these changes were dashed as the bill advanced without the inclusion of these crypto tax provisions.

The passage of the bill was not without controversy. Disagreements over Trump's crypto interests resurfaced ahead of the vote, with Democrats introducing amendments to address these concerns. Despite these disagreements, the bill was narrowly passed by Senate Republicans, taking a significant step toward the president's goal of signing the legislation into law.

The bill, before last-minute changes, was projected to increase budget deficits by about $3.3 trillion through 2034, compared with letting tax cuts expire at the end of the year. This increase in the deficit has raised concerns about the long-term economic impact of the bill. However, supporters of the bill argue that it will help shrink the debt in the long run.

The bill's passage has also sparked debate about its potential impact on healthcare. Critics have argued that the bill could lead to an increase in the number of uninsured Americans. Despite these concerns, the bill's passage represents a significant victory for the Trump administration. The bill, if signed into law, would implement many of the president's core policy agenda items, including changes to the tax code and healthcare system.

For Bitcoin and crypto investors, the broader implications lie in increased consumer spending, favorable tax optics, and growing Republican support for digital assets. Trump has recently made crypto a campaign talking point, pledging to defend self-custody, oppose central bank digital currencies (CBDCs), and promote American Bitcoin mining. If this bill becomes law, it could reinforce those positions by aligning pro-growth, pro-innovation tax policies with a friendlier regulatory tone for digital assets.

However, some analysts caution that without matching spending cuts, the bill could widen the federal deficit, eventually pressuring Treasury yields and impacting risk assets like crypto. Several crypto-friendly provisions, including Sen. Cynthia Lummis’ amendment to reform mining and staking taxation, were proposed for inclusion. Although they didn’t make it into the Senate version, advocates are still pushing for their addition in the House.

With the Senate’s approval of Trump’s economic package, the path is clear for potential shifts in how America handles both traditional finance and emerging digital assets. As the House takes its turn, the crypto industry will be watching closely—not just for regulatory reform, but for broader economic signals that could shape the next phase of Bitcoin’s cycle.