US Senate Passes Trump Budget Bill Without Crypto Tax Fix

Key Takeaways

• The US Senate passed Trump’s budget bill in a 50-50 vote with Vice President JD Vance breaking the tie.
• The bill excludes provisions on crypto tax relief, despite efforts from Senator Cynthia Lummis.
• Lummis proposed addressing double taxation on mining and staking but her amendment was not included.
• Democrats and some Republicans criticized the bill for healthcare cuts and AI regulation gaps.
• The legislation now returns to the House for final consideration of Senate amendments.

Senate Advances Budget Bill Without Crypto Relief

The US Senate passed President Donald Trump’s flagship budget reconciliation bill on Tuesday in a 50-50 vote, with Vice President JD Vance casting the tiebreaking vote. Despite discussions, the final version of the “One Big Beautiful Bill Act” excluded any language addressing cryptocurrency taxation.

Senator Cynthia Lummis of Wyoming had advocated for reforms to end what she described as “unfair double taxation” on cryptocurrency mining and staking income. However, the proposed amendment did not make it to the Senate floor.

Crypto Mining and Staking Still Face Tax Uncertainty

Under current US tax rules, crypto miners and stakers are often taxed twice — once at the time of token issuance and again when those assets are sold. Lummis aimed to include a provision that would defer taxation until disposal, aligning with how other assets are treated.

Despite voicing support for the overall bill after its passage, Lummis acknowledged the omission. “It isn’t perfect,” she stated, “but a major step in the right direction.”

Broader Controversy Over Budget Priorities

The bill drew sharp criticism from Democrats and even some Republicans. Opponents raised alarms over cuts to healthcare, lack of oversight for artificial intelligence development, and large tax breaks for major tech firms.

Senator Elizabeth Warren criticized the bill for favoring corporate giants. “Donald Trump and Republicans are writing a $15 billion check to Meta, paid for by cutting health care for millions,” she said on Instagram.

Bill Returns to House for Final Review

The legislation now returns to the US House of Representatives for consideration of the Senate’s changes. With a slim Republican majority in the House, final passage remains uncertain amid partisan disagreements.

While the crypto community hoped for progress on taxation clarity, the omission highlights ongoing challenges in gaining legislative support for digital asset reforms in Washington.

What Has Happened So Far

• June 2024: Early drafts of Trump’s budget plan begin circulating in Senate finance discussions.
• May 2025: Senator Cynthia Lummis signals plans to address crypto mining and staking taxation.
• June 30, 2025: Senate opens debate on the “One Big Beautiful Bill Act,” introducing 20+ amendments.
• July 2, 2025: Senate passes the bill without including Lummis’ crypto tax amendment.