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Trump-Backed ‘One Big Beautiful Bill’ Passes US Senate, Challenges Ahead for Crypto Legislation
The controversial ‘One Big Beautiful Bill’, supported by former President Donald Trump, narrowly passed the US Senate with a 50-50 vote on July 2. The tie was broken by Vice-President J.D. Vance, and the bill is now set to return to the House of Representatives for further consideration.
Each party was deeply divided, with all Democratic senators and three Republicans opposing the bill. Despite Sen. Cynthia Lummis’s earlier intentions to propose amendments concerning the taxation of cryptocurrency miners and stakers, these did not come to fruition. Lummis had previously suggested that the current tax system imposes unfair double taxation on miners and stakers, rendering them liable for taxes when they receive block rewards and again when they sell their assets.
“For years, miners and stakers have been taxed TWICE. It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower.”
— Senator Cynthia Lummis
Ultimately, Lummis’s amendments were absent from the Senate discussions, and the legislation that passed does not address the issue of crypto taxation. Following the vote, she commented that while the bill is not ideal, it represents significant progress.
Bipartisan Criticism and Backlash from Influential Figures
The bill has faced criticism across the political spectrum, drawing ire for its substantial tax breaks for wealthy individuals, risk of soaring government debt levels, and proposed cuts to vital services such as Medicaid. Even Elon Musk, a known Trump supporter, took to social media to express his discontent, threatening to campaign against any legislators who endorsed the bill, stating that “they will lose their primary next year if it is the last thing I do on this Earth.”
Additionally, Oregon Senator Jeff Merkley proposed an amendment aimed at banning high-ranking government officials, including the president and vice-president, from owning or promoting cryptocurrencies. This proposal was ultimately rejected by the Senate.
Stalled Crypto Legislation and Future Prospects
With impending deadlines, it appears that the House will prioritise discussions on the ‘One Big Beautiful Bill’ ahead of Trump’s July 4 deadline, possibly putting other cryptocurrency-related legislation, including the GENIUS Act and the BITCOIN Act, on hold. Senator Nicholas Begich from Alaska, who sponsored the BITCOIN Act to create a strategic Bitcoin reserve, indicated that these legislative initiatives are unlikely to be addressed until later this year or early next year.
“There’s a lot of activity scheduled for the floor, and these are significant pieces of legislation, but they will take a backseat to the budgeting exercises.”
— Senator Nicholas Begich
Meanwhile, the CLARITY Act, which aims to define the structure of the crypto market and clarify the roles of various regulatory bodies, may also face delays. Republican leaders on the Senate Banking Committee have suggested the possibility of drafting their own version of the legislation, potentially pushing discussions until October.
As debates around fiscal policy and government spending continue, the future of crypto legislation remains uncertain, highlighting a pressing need for clarity and structure in this rapidly evolving market.
Conclusion
The passage of the ‘One Big Beautiful Bill’ marks a significant moment in US legislative affairs, presenting both opportunities and challenges for the evolving landscape of cryptocurrency regulation. As political dynamics shift and public scrutiny intensifies, stakeholders in the crypto space must remain vigilant and proactive in advocating for fair treatment in taxation and regulation. The upcoming months are likely to be crucial in determining the trajectory of cryptocurrency legislation in the United States.
