Senate Passes Bill Ignoring Crypto Tax Reform

The U.S. Senate has passed the “One Big Beautiful Bill Act,” a significant piece of legislation that has left the crypto community in a state of dismay. The bill, which was narrowly approved with a 50-50 vote and decided by Vice President JD Vance, did not include the tax reform amendment proposed by Senator Cynthia Lummis. This amendment aimed to eliminate the double taxation on block rewards, which are taxed both upon receipt and upon sale, a burden that has long been criticized by the crypto community.

Senator Lummis, a vocal advocate for the crypto industry, had hoped to position the United States as a global leader in bitcoin and crypto. However, her proposal did not even make it to the Senate floor, leaving industry professionals to continue bearing the financial strain of regulatory uncertainty. The Senate's decision to sidestep the crypto issue has raised questions about whether the sector is being deliberately ignored or if it is simply seen as marginal by the political establishment.

The debate surrounding the bill was not merely technical but also philosophical, touching on issues of taxation, public health, and the role of big businesses. Senator Elizabeth Warren highlighted the ideological divide, criticizing the Republicans for proposing a $15 billion check to Meta, funded by cuts to public health services. In this context, the crypto community's concerns were overshadowed by broader political tensions, with the Senate prioritizing tax reliefs for large corporations and securing votes from key states.

The bill's journey is far from over, as it now returns to the House of Representatives for further deliberation. The political climate remains tense, with three Republicans voting against their own party in the Senate. Every vote will be crucial in the coming days as the bill faces intense opposition from the Democratic side. The crypto community, meanwhile, will have to continue advocating for its interests amidst debates on AI, health, and redistribution.

The Senate's decision to exclude the crypto amendment sends a mixed message to the industry. While it indicates that crypto and Web3 are not currently a priority, it also suggests that the community must persist in making its voice heard. The recent adoption of the bill has reignited interest in digital innovations and technological sovereignty, and it remains to be seen whether this is a strategic move by Donald Trump or simply a matter of timing. The crypto community will need to navigate this complex political landscape to ensure its interests are represented in future legislation.