The US Senate's marathon vote-a-rama session stretched into its 17th hour Monday as lawmakers scrambled to attach amendments to President Trump's massive tax and spending package, with cryptocurrency regulations emerging as a key battleground. The Republican-led "One Big Beautiful Bill Act" faces intense scrutiny as senators from both parties propose hundreds of amendments before Trump's Friday deadline. This latest crypto legislative push comes as the Senate recently passed the GENIUS Act on stablecoin regulation, showing continued momentum for digital asset reforms.
Republican Senator Cynthia Lummis spearheaded crypto-friendly amendments aimed at ending what she called "unfair tax treatment" of digital assets. Her proposals would waive taxes on crypto transactions under $300 with a $5,000 annual cap, exclude most crypto lending from taxation, and defer taxes on mining, staking, and airdrop rewards until assets are sold. These changes would significantly simplify the complex cryptocurrency reporting requirements to the IRS that currently burden taxpayers. The amendments also introduce a 30-day wash sale rule to prevent tax-loss harvesting schemes in cryptocurrency trading.
Meanwhile, Democrats suffered a defeat as the Senate rejected their amendment to ban government officials and their families from promoting or owning digital assets. The proposal, backed by Senators Elizabeth Warren, Jeff Merkley, and Jack Reed, would have prohibited the president, Congress members, and other officials from cryptocurrency involvement, extending restrictions to spouses and children. These ethics concerns mirror previous Senate crypto hearings that saw low turnout amid questions about Trump conflicts.
The legislative drama intensified as Elon Musk, Trump's former cost-cutting advisor, threatened to form a new "America Party" if the bill passes, calling the $3.3 trillion spending package a "disgusting abomination." With the House having passed the bill by just one vote in May, the Senate's slim Republican majority means the outcome remains uncertain as voting continues through the night.