U.S. lawmakers are ensconced in a high-stakes voting session on former U.S. President Donald Trump’s massive $4.5 trillion tax-and-spending plan—dubbed the “One Big Beautiful Bill”—with cryptocurrency an unexpected focus. As senators rush to get the bill done by July 4th, the Republican lawmakers are working overtime to add several crypto-focused tax amendments that could spell big changes for digital asset holders.
One of the most well-known proponents is Senator Cynthia Lummis (R-WY), who recently introduced a crypto-friendly amendment to put a stop to the “unfair tax treatment” of cryptocurrencies. The amendment aims to exempt taxes on crypto transactions below the $300 mark, involving up to $5,000 per year. All types of digital assets would extend this application, including stablecoins.
America leads in financial innovation, and thanks to President Trump, we are keeping it that way! 🇺🇸 I am working on an OBBB amendment to ensure Americans can use digital assets without fear of tax violations. More to come soon!
— Senator Cynthia Lummis (@SenLummis) June 30, 2025
Lummis also seeks a delay on the taxes to be paid on earnings from staking, earning through mining, and getting an airdrop until the assets are sold. The proposal also seeks to exempt crypto lending arrangements from tax events. It would apply the IRS’s 30-day wash sale rule to crypto traders, preventing users from selling crypto at a loss and immediately buying back a similar asset for tax benefits.
These updates will make things fairer and clearer, said Lummis. “People who use crypto should not be punished for being innovative.”
An amendment to ban government officials and their families from owning or promoting any digital assets was shot down earlier in the session. The amendment was backed by Democrats and was shot down after it was debated. Senators Elizabeth Warren, Jeff Merkley, and Jack Reed sponsored the amendment, which would have imposed far-reaching restrictions on elected officials and their families, as well as former government contractors like Elon Musk. Lummis firmly rejected the measure, indicating that it will cause innovations to halt.
Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!
— Elon Musk (@elonmusk) June 30, 2025
And they will lose their primary next year if it is the last thing I do on this Earth.
Lummis warned on the Senate floor that America “would have effectively shut the door on one of the most significant waves of innovation ever” had similar rules been implemented during the early days of the internet.
Elon Musk has jumped back into politics as tensions ramp up in Washington. Musk tweeted about this bill to criticize it. He warned them that he will make a new political party if this bill is passed after the changes proposed.
“If this crazy spending bill passes, the America Party will form the next day,” Musk posted on X. He slammed Congress for what he said was the largest-ever debt-funded legislation, which would junk an upcoming $3.3 trillion hit on the deficit over the next decade.
The House approved Trump’s bill by a very narrow margin in May, 215–214, and the Senate is just as split. The end result, particularly pertaining to the crypto amendments, could influence policy on digital assets for years to come and the political scene in the run-up to the next election cycle.
As time runs out and voting continues to happen, crypto is watching closely. If Congress passes Lummis’ amendment, the 2024 budget will help establish clear rules on digital asset taxation; that would be a watershed moment for the industry in the United States.
