Senate Passes Budget Bill Without Crypto Tax Provisions, Lummis Amendment Fails

The U.S. Senate narrowly passed a sweeping budget bill early Wednesday, advancing President Trump's fiscal agenda without including proposed reforms to cryptocurrency taxation. Senator Cynthia Lummis' amendment—which sought to exempt small crypto transactions from capital gains taxes and address double taxation issues—failed to make the final cut despite last-minute industry lobbying efforts.

The 50-50 vote required Vice President J.D. Vance to cast the tie-breaking ballot after an all-night session that saw most proposed amendments rejected. The omission leaves crypto tax policy unchanged for now, pushing Lummis' proposals back into the realm of standalone legislation.

Market participants had closely watched for potential tax clarity as the $3 trillion spending package moved through Congress. The bill now faces an uncertain fate in the House, where progressive Democrats are expected to challenge its deficit-expanding provisions.