US Senate Marathon Vote Features Crypto-Related Amendments in Trump’s Massive Tax and Spending Bill
Washington, D.C. — The U.S. Senate is currently engaged in an extended session, voting on a wide array of amendments to President Donald Trump’s expansive tax and spending legislation, informally known as the “One Big Beautiful Bill Act.” The marathon vote-a-rama, underway for over 17 hours, includes significant proposals affecting the cryptocurrency sector as lawmakers from both parties push to include hundreds of amendments before the bill’s anticipated passage deadline on Friday, July 4. The bill, which passed the House in May by a narrow 215-214 margin, faces a similarly tight contest in the Senate given the slim Republican majority. The extensive amendment process has the potential to stretch into the early hours Tuesday as senators negotiate policy changes and additions across a broad legislative agenda.
Crypto Tax Amendments Proposed by Senator Cynthia Lummis
Republican Senator Cynthia Lummis has taken a leading role in advocating for cryptocurrency-friendly provisions within the bill. Lummis introduced an amendment aimed at addressing what she described as the “unfair tax treatment” currently faced by cryptocurrency users, particularly miners and stakers. According to Lummis, these individuals are presently taxed twice: first upon receiving block rewards or staking income and again when they sell their digital assets.
Her amendment seeks to alleviate this burden by exempting crypto transactions under $300 from taxation, subject to a $5,000 annual aggregate cap. The waiver would apply to stablecoins and other digital currencies. Additional provisions include excluding most crypto lending agreements from tax liability and deferring taxation on crypto received through airdrops, mining, and staking until the assets are sold.
Furthermore, the amendment proposes implementing the 30-day wash sale rule for cryptocurrencies. This rule, well-established in stock trading, prohibits taxpayers from claiming losses on a sale if they repurchase a substantially identical asset within 30 days before or after the sale, thereby deterring tax loss harvesting on digital assets.
Senate Rejects Democratic Amendment to Restrict Officials’ Crypto Holdings
Earlier in the day, the Senate rejected a Democrat-backed amendment that sought to restrict government officials, including the president, vice president, members of Congress, and their immediate families, from offering or promoting various digital assets. Senators Jeff Merkley, Elizabeth Warren, and Jack Reed supported the proposal aiming to prevent potential conflicts of interest and unethical promotion of cryptocurrencies, memes coins, tokens, non-fungible tokens (NFTs), and stablecoins by government figures.
The amendment also extended restrictions to spouses and children of officials and even former special government employees—such as Elon Musk—for up to one year after leaving their positions. Senator Lummis opposed this measure, arguing on the Senate floor that while concerns about ethics are valid, the proposal went too far. She warned that placing such restrictions on families of officials would stifle American innovation and competitiveness in the emerging digital asset space. Lummis further remarked that if similar regulations had existed during the early days of the internet, the U.S. would have hindered its global business leadership.
Elon Musk Reacts, Threatens New Political Party
Elon Musk, CEO of Tesla and a former Trump administration technology adviser, has recently reentered the political dialogue surrounding the bill. Musk criticized the legislation’s substantial increase in government spending, labeling it a “disgusting abomination” that could add approximately $3.3 trillion to the national debt over the next decade.
On Twitter (now X), Musk announced plans to form a new political party—the "America Party"—should the bill pass, positioning it as an alternative to the existing Democratic and Republican parties. Musk also vowed to challenge lawmakers who support what he calls excessive government spending, warning that they could face significant political consequences in upcoming primaries.
The Ongoing Legislative Battle and Its Broader Impact
Senators remain locked in an intense and lengthy debate over the massive bill that would reshape federal tax, spending, and regulatory policies. Cryptocurrency regulation and tax treatment have become focal points in the broader discussion due to the growing importance of digital assets in the economy.
As the vote-a-rama continues, stakeholders in the crypto industry watch closely, aware that the outcomes could significantly affect innovation, taxation, and the regulatory landscape for digital currencies in the United States.
The Senate’s deliberations occur under tight time constraints, with the House having passed the bill and President Trump urging swift enactment to meet a July 4 deadline. The final legislative language and inclusion of crypto provisions remain uncertain until the vote concludes.
For ongoing coverage of this developing story and expert analysis of cryptocurrency policy, stay tuned.