Crypto left out of Trump Budget Bill
U.S. Crypto Lobby Fails to Influence Trump’s Budget Bill
Crypto industry lobbyists failed to push through any provisions in the 1,000-page budget bill passed by the U.S. Senate on July 1—hailed by President Trump as the “Big Beautiful Bill.”
Despite contributing over $190 million to both parties in the 2024 elections, the crypto industry saw no tax relief or mention in the legislation.Senator Cynthia Lummis, a vocal crypto advocate, argued for changes to the tax code related to crypto mining and staking. She claimed miners and stakers face double taxation: first when they receive rewards, and again when they sell them.
“It’s time to end this unfair tax treatment and make America the global crypto and Bitcoin superpower,” Lummis told the Senate.
Yet, the final version of Trump’s budget passed with only a narrow margin and contained no references to “digital assets,” “Bitcoin,” “Ethereum,” “crypto,” “Web3,” or “blockchain,” despite clear efforts to include them.
Miners and stakers want fair taxes
Currently, the IRS classifies mining and staking rewards as taxable income at the time of receipt. When sold, capital gains taxes are also applied. While technically not double taxation, industry participants say the rules are burdensome, especially when tax is owed before any profit is realized.
Lummis also proposed a de minimis exemption for small crypto transactions, such as gas fees or micro payments. Although these generate little tax revenue, they cause disproportionate compliance burdens.
Still, during negotiations, the political focus remained on cutting Medicare and Social Security benefits. Lawmakers viewed giving industry-specific exemptions—particularly for an asset class perceived as favoring the wealthy—as politically risky.
“If we care about fairness, we should treat digital assets like other financial assets,” Lummis concluded.
But her concerns were ignored, and Trump’s “big beautiful bill” passed the Senate without any mention of crypto.
As we wrote, Cynthia Lummis pushes U.S. Bitcoin reserve as crypto policy shifts
