Senate GOP Doubles Down on Pro-Crypto Reforms as Budget Battle Heats Up

Washington's latest fiscal fight just got a crypto twist. Senate Republicans are mounting a last-minute push to slip digital asset reforms into must-pass budget legislation—angling to turn the spending bill into a Trojan horse for industry-friendly policies.

The Regulatory End-Run

Insiders confirm GOP staffers are drafting amendments that would curb SEC oversight of stablecoins and carve tax breaks for blockchain developers. The move comes as bipartisan crypto legislation remains stalled—forcing proponents to seek backdoor regulatory wins.

Wall Street's Ironic Whisper

Banking lobbyists—who spent years fighting crypto—now quietly support certain provisions. Because nothing unites rivals like the chance to rewrite rules in their favor. (Except maybe a Fed bailout.)

The Bottom Line

Whether these amendments survive depends on Democratic appetite for compromise. But one thing's clear: in D.C.'s budget bloodsport, even trillion-dollar spending bills now double as crypto policy battlegrounds.

Fair Tax Treatment For Crypto Miners And Stakers

On Monday, Senator Cynthia Lummis, an advocate for the adoption of digital assets, took to social media platform X (formerly Twitter), to voice her concerns about the current tax treatment faced by crypto miners and stakers. 

The Senator highlighted that these individuals are taxed twice: once when they receive block rewards and again upon selling their assets. “It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower,” Lummis stated.

This sentiment resonates with President Trump, who has consistently supported the integration of digital assets into the country’s financial system. His administration has proposed the establishment of the nation’s first crypto strategic reserve, which would include bitcoin (BTC) and other tokens as part of its framework.

Fox journalist Eleanor Terret also reported on X that discussions around crypto tax amendments remain alive, despite some disagreements that arose over the weekend. 

Congressional Divisions Toward Digital Assets

Terret indicated that the WHITE House is advocating for the inclusion of Lummis’s proposed changes in the final version of the bill, demonstrating a concerted effort to galvanize support for the cryptocurrency sector.

In contrast to Lummis’s approach, Senator Jeff Merkley introduced an amendment aimed at barring elected officials from promoting or profiting from crypto tokens in which they have a financial interest. 

Merkley argued that allowing such practices undermines the integrity of governance. “The sale of crypto coins by any of us for financial benefit is corrupting our responsibility to govern by and for the people,” he asserted.

Lummis opposed Merkley’s amendment, warning that it could stifle American innovation and hinder the government’s ability to effectively understand and regulate digital assets. 

In a pointed remark in Congress on Monday, the pro-crypto Senator noted, “If we’re serious about ethics and financial products, let’s focus on real solutions and all financial products, not just digital.”

Ultimately, Merkley’s amendment was defeated, failing to pass with a vote of 47 to 53, reflecting the ongoing tensions in Congress regarding the regulation of digital assets, as well as the divisions among lawmakers regarding this emerging technology.

As of press time, Bitcoin trades at $107,187, up 2% on the weekly time frame. Despite the short-term recovery for the market’s leading crypto, BTC still trades 4% below its record price of $111,800.  

Featured image from DALL-E, chart from TradingView.com