Senate Passes Trump Budget Bill, Excludes Crypto Tax Reform

- Senate rejects crypto tax proposals in a critical budget vote. - Senate leaves Lummis' crypto reforms off the Trump-backed legislation. On July 1, 2025, CoinDesk reported that the U.S. Senate narrowly passed the controversial "One Big Beautiful Bill Act" in a 51-50 vote after Vice President JD Vance cast the tie-breaking decision. The bill notably excluded crypto tax reforms that Senator Cynthia Lummis had proposed. Senator Cynthia Lummis of Wyoming, a prominent advocate for digital asset innovation, introduced an amendment to revise what she labeled "unfair" cryptocurrency tax policies. Her proposals sought to eliminate the double taxation of digital assets—currently taxed upon both receipt and sale—and establish a de minimis exemption for small crypto transactions, covering up to $300 per transaction with an annual cap of $5,000. Despite these targeted measures, the Senate did not adopt Lummis' amendment into the final bill. As a result, this decision highlights the ongoing ambiguity of U.S. crypto taxation and shows that federal lawmakers remain reluctant to tackle blockchain-related tax issues directly. On July 1, after the vote, U.S. Senator Cynthia Lummis commented that the bill was "not perfect" but marked "a major step in the right direction." The legislation, which includes key features such as extending the 2017 tax cuts, increasing funding for border and military priorities, and reforming social safety-net programs, now moves to the U.S. House of Representatives for further discussion and amendments. The exclusion of the crypto tax provisions reinforces the lack of progress on regulatory clarity for digital assets, a development closely monitored by market participants who had hoped new reforms might offer clarity and relief. Meanwhile, as of 14:00 UTC on July 1, market data showed Bitcoin (BTC) trading at $31,684, reflecting a 0.8% increase in 24-hour trading volume, while Ethereum (ETH) traded at $1,998, a 1.2% gain. Market sentiment remains subdued as crypto investors await clearer legislative guidance.