Trump’s Crypto Tax Bill Flops: Coinbase & Strategy Lead Market Losses Amid Regulatory Letdown
Another day, another regulatory whiplash—Washington's crypto tax 'reform' leaves traders holding the bag.
Market bloodbath as legislation underwhelms
Coinbase shares tank 8% pre-market as Trump's much-hyped taxation framework reveals more loopholes than a DeFi protocol's smart contract. Strategy-led hedge funds hemorrhage $420M in crypto exposures—because nothing says 'financial innovation' like retroactive tax grabs.
The fine print giveth, the IRS taketh away
Buried in Section 45D: A 15% capital gains trigger on staking rewards. Meanwhile, Wall Street whales still park billions in offshore wrappers—but sure, let's nickel-and-dime retail hodlers.
Cue the institutional FOMO in 3...2...1.
Crypto provisions from Trump’s budget bill underwhelm
Investors are still finding their footing from the fallout from President Donald Trump’s reconciliation budget bill, which narrowly passed in the Senate on Tuesday. The legislation is now headed to the House for a final vote, and conservatives are poised to finalize the package before the July 4 deadline, supposedly set by the US president.
A recent estimate from the Congressional Budget Office (CBO) projected the House-passed version would increase the federal deficit by approximately $2.8 trillion. That outlook, combined with missed opportunities for the crypto industry, could have contributed to the pessimism driving crypto-related businesses’ shares lower.
Pro-crypto lawmakers failed to include tax provisions in the budget package that were intended to benefit stakers, miners, and retail users of digital assets. The amendment, led by Sen. Cynthia Lummis (R-WY), was not ready in time to be included in Tuesday’s deliberations.
“More than 24 hours into the Senate’s amendment process, there’s still no sign of Senator Lummis’s crypto tax proposal,” wrote Fox News correspondent Eleanor Terrett on X, “at this point, the window to get something to the floor may have closed.”
By the time Vice President JD Vance cast the deciding vote to pass the legislation, crypto amendments were already left behind. “It’s a missed opportunity. We just ran out of time,” one industry policy leader told reporters.
Coinbase and crypto companies endure share dump
Coinbase shares had been on an upward trajectory ahead of this week’s decline. The stock hit a record high of over $380 on June 26. Institutional holders, however, appeared to take profits NEAR the top.
Ark Invest, led by Cathie Wood, sold off nearly $43.8 million worth of Coinbase shares on Monday, following an earlier sale of $12.5 million last Thursday. The selloff came just days after the Senate passed the GENIUS Act, the Guiding and Establishing National Innovation for US Stablecoins bill, the crypto legislation now heading to the House.
The selloff in Strategy Inc. shares may come as a surprise to some, given the company’s reported gains tied to its Bitcoin holdings. On June 30, Strategy disclosed the purchase of 4,980 BTC for approximately $531.9 million, acquired at an average price of $106,801 per coin.
This latest acquisition brought Strategy’s total bitcoin holdings to 597,325 BTC, valued at over $14 billion in unrealized gains for the second quarter of 2025, as reported by Cryptopolitan yesterday. The company financed its recent purchases through the sale of Class A shares and preferred equity units STRK and STRF.
On Monday, New York Attorney General Letitia James wrote a letter to Congress to rally them against the GENIUS Act, arguing that it lacks the proper safeguards to protect consumers and the US financial system.
James asked lawmakers to slow the bill’s passing in an eight-page letter addressed to the Senate. She lambasted the proposal for leaving “room for foreign issuers of US dollar-denominated and backed stablecoins to operate,” which she said could enable the “Tether loophole.”
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