As the U.S. Senate races to finalize Donald Trump’s massive tax and spending plan, crypto regulation is suddenly center stage. The bill—officially called the One Big Beautiful Bill Act—has triggered a 17-hour voting marathon as lawmakers rush to attach last-minute amendments. And crypto tax rules are among the most debated changes.
📜 Senator Lummis Proposes Bold Crypto Tax Reforms
Republican Senator Cynthia Lummis introduced a sweeping amendment aimed at ending what she calls unfair taxation of digital assets. Her plan would:
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Eliminate taxes on crypto transactions under $300, capped at $5,000 annually
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Delay taxes on mining, staking, and airdrops until assets are sold
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Exclude most crypto lending from taxation
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Apply the wash sale rule to crypto, preventing tax-loss harvesting through short-term repurchasing
“These changes would ensure Americans can use digital assets without fear of tax violations,” said Lummis.
If passed, these reforms could make it far easier for crypto users to spend and earn digital assets without triggering complicated tax consequences—a long-standing concern for casual users and institutional players alike.
🚫 Democrats Try to Restrict Crypto Promotion by Officials
On the other side of the aisle, Democrats introduced an amendment that would ban government officials and their families from promoting or investing in cryptocurrencies, including NFTs and stablecoins.
The amendment was backed by Senators Elizabeth Warren, Jeff Merkley, and Jack Reed, and would have applied even to former officials and high-profile advisors like Elon Musk.
The proposal was ultimately shot down, with Lummis arguing it would “inflict serious harm on American innovation.” She likened the ban to telling Silicon Valley it wasn’t welcome in the early days of the internet.
🔥 Elon Musk Threatens New Political Party Over Bill
Elon Musk, who once worked with Trump and helped fund his campaign, responded to the bill’s massive spending plan with fury. On X, he threatened to launch a new “America Party” if the bill passes.
Musk claims the bill’s $3.3 trillion cost over 10 years is “a disgusting abomination” and has vowed to unseat lawmakers who support it. His opposition could sway both voters and other tech figures worried about U.S. debt and economic policy.
📉 Crypto’s Future Hinges on Legislative Decisions
With Trump pushing for the bill to pass by July 4, and crypto tax language hanging in the balance, the coming days could shape how digital assets are taxed and regulated for years.
If reforms like Lummis’s are adopted, the U.S. could become more crypto-friendly, encouraging innovation and everyday use. But if restrictions increase, it may drive more activity overseas.
👉 For more updates on U.S. crypto legislation, visit https://cryptodicenews.blog/
