US Senate Passes Trump Budget Bill Without Crypto Tax Provisions

Key Takeaways

• US Senate passes Trump budget bill with 50-50 vote, Vice President JD Vance cast tie-breaking vote
• Senator Lummis’s crypto tax provisions were not included in the final bill
• The bill will return to the House for consideration of Senate amendments
• Other crypto bills like GENIUS and BITCOIN are still being processed separately

Bill Passes Amid Controversy

Republicans in the US Senate passed a budget reconciliation bill strongly championed by President Donald Trump. The bill faced heavy criticism from members of both parties due to concerns about healthcare cuts, artificial intelligence regulations, and wealth redistribution through tax cuts.

In a 50-50 vote after more than 24 hours of deliberation, the Senate passed the “One Big Beautiful Bill Act” with Vice President JD Vance serving as the tie-breaker. All Democratic senators and three Republican senators voted against the legislation.

Crypto Tax Proposal Excluded

During debate over the bill, Wyoming Senator Cynthia Lummis proposed adding provisions to address what she called “unfair tax treatment” of crypto miners and stakers. She argued the legislation would resolve the double taxation issue facing the crypto community.

However, the changes she proposed for the bill did not appear in the amendments presented in the Senate, and the law was passed without any mention of crypto taxation.

Lawmakers’ Reactions

“I want to see that provision in the final product,” Alaska Representative Nicholas Begich shared. “I think there will be other opportunities for us to get that into a piece of legislation that has to pass.”

Following the vote, Lummis said the bill was “not perfect” but “a major step in the right direction.” The bill will be sent back to the US House of Representatives to address the Senate amendments.

Democratic Opposition

Massachusetts Senator Elizabeth Warren criticized: “Donald Trump and congressional Republicans are planning to write a $15 billion check to Meta – paid for by cutting healthcare for millions of Americans. They care more about helping billionaire corporations than helping the people.”

Oregon Senator Jeff Merkley submitted an amendment similar to his proposal in the GENIUS Act, which would ban presidents, vice presidents, members of Congress, and government officials from owning or promoting digital assets. However, this amendment was rejected by the Senate.

Budget Bill Takes Priority

Although the Senate and House are advancing bills to regulate stablecoins in payments, create a national Bitcoin reserve fund, and establish digital asset market structures, these laws will likely be considered after the budget bill.

The Senate passed the GENIUS Act on June 17, sending the bill to the House for further consideration. Begich said he expects “limited changes, if any” to the law.

Crypto Bill Prospects

“I think the Bitcoin reserve will happen later this year and early next year,” Begich, who sponsors the 2025 BITCOIN Act, said. He added that there is a lot of scheduled activity, but crypto bills will not be prioritized over ongoing budget and reconciliation activities.

Regarding market structure, House members voted to pass the Digital Asset Market Transparency Act (CLARITY) out of committee in June. However, Republican leadership on the Senate Banking Committee has suggested they intend to draft their own version of the bill and pass it before October.