Trump’s Big Beautiful Bill Could Reshape Crypto Tax Rules—If It Survives the Senate
The United States Senate is battling with President Donald Trump’s “One Big Beautiful Bill Act,” a comprehensive tax and spending bill that includes cryptocurrency tax provisions under intense oversight.
As senators address a marathon amendment-voting session, a proposal from Senator Cynthia Lummis to ease crypto taxation is a major point.
With a July 4, 2025, deadline set by Trump, the bill’s outcome could affect fiscal policy and cryptocurrency adoption.
Legislative Overview: Trump’s Big Beautiful Bill
President Trump’s “One Big Beautiful Bill Act” is a flagship policy of his second term, renewing tax cuts from his first administration while increasing funding for security, defense, and energy production.
The bill passed the House on May 22, 2025, by a narrow 215-214 vote, revealing its divisive nature.
Now before the Senate, where Republicans hold a 51-49 majority, the legislation is undergoing a vote-a-rama, an extended process for voting on amendments, with a target passage by July 4, 2025.
The “Big Beautiful Bill” is estimated to increase the federal deficit by $3.3 trillion over a decade, separate from a potential $5 trillion debt limit adjustment. This fiscal impact has sparked outrage, notably from Elon Musk, who labeled it a “budget-busting omnibus” on X and vowed to support political challengers to its backers, increasing stakes.
Lummis Fights to Slash Crypto Taxes in Trump’s Big Beautiful Bill
A major amendment from Senator Cynthia Lummis plans to address what she describes as “unfair tax treatment” of cryptocurrencies.
The proposal includes exempting crypto transactions under $300, with a $5,000 annual cap, including stablecoins; excluding most crypto lending from taxation; deferring taxes on airdrops, mining, and staking until assets are sold; and applying the 30-day wash sale rule to prevent tax avoidance through rapid sell-and-repurchase.
These measures are designed to simplify tax compliance for digital asset users, particularly for small transactions and staking activities, ultimately promoting increased crypto adoption.
Separately, a Democratic proposal to prohibit government officials and their families from promoting digital assets was rejected, Senator Lummis opposing the measure, argued it would hinder innovation.
The rejection shows a Senate inclination toward crypto-friendly policies, though concerns about conflicts of interest remain, especially given Trump’s vocal support for digital assets.
These amendments are unrelated to the GENIUS Act, a stablecoin regulation bill passed on June 17, 2025.
Senate’s Vote-a-Rama Progress
As of July 1, 2025, the Senate is in the middle of a vote-a-rama, considering an unlimited number of amendments, each of which must be separately voted on.
A 51-49 procedural vote on June 28, 2025, advanced the big beautiful bill to the floor, with Senator Ron Johnson’s last-minute support proving critical. The process is described as a “slog,” with no fixed timeline, but it is driven by Trump’s July 4 deadline.
The status of Lummis’s crypto amendment remains uncertain, with no vote outcome confirmed.
If the Senate passes the bill with amendments, it will require House reconciliation before reaching the White House, adding additional complexity before it reaches the White House, especially with Musk’s ongoing criticism and lingering Senate holdouts.
What’s at Stake in 2025?
Should Lummis’s amendment pass, it could reduce tax burdens for crypto users, particularly for small transactions and staking, potentially boosting mainstream adoption.
The rejection of the promotion ban is a sign of Senate openness to digital asset innovation, though regulatory clarity remains a concern.
Beyond crypto, the big beautiful bill’s $3.3 trillion deficit impact—distinct from a possible $5 trillion debt ceiling increase—triggers opposition, with Musk’s threat to form an “America Party” generating political fire.
For crypto investors, the outcome of the amendment will help determine tax obligations, while that of the bill will decide Trump’s economic agenda.
