U.S. Senate Passes Budget Bill Without Crypto Tax Provisions

The U.S. Senate narrowly passed a sweeping budget bill early Tuesday, advancing legislation that would enact much of former President Donald Trump's fiscal agenda. Notably absent from the final version was Senator Cynthia Lummis' proposed amendment to reform cryptocurrency taxation.

The Wyoming Republican had sought to exempt small-scale crypto transactions from capital gains taxes and address what she called "unfair double taxation" in digital asset transactions. Despite last-minute lobbying efforts from industry groups, the provision failed to make the cut during a marathon amendment process that saw Vice President J.D. Vance cast the tie-breaking vote.

The omission leaves crypto tax policy unchanged for now, pushing Lummis' proposals back into the realm of standalone legislation. The bill now moves to the House of Representatives, where its $3 trillion deficit impact promises fierce debate.