US Senate All-Nighter on Trump’s Mega Spending Bill Includes Crypto Tax Debates

The US Senate is locked in a marathon session debating President Donald Trump’s sweeping tax and spending bill, with discussions stretching past 17 hours as lawmakers scramble to add hundreds of amendments. 

Known as the “vote-a-rama,” this session could continue into the early hours of Tuesday in Washington, D.C., as Trump pushes to have the One Big Beautiful Bill Act passed before Friday, July 4.

The House narrowly approved the bill in May with a 215-214 vote, and with the Republicans’ slim majority in the Senate, the bill’s passage remains uncertain. While much of the debate has focused on government spending, several proposed amendments have brought crypto regulations into the spotlight during the intense deliberations.

Lummis Pushes for Fairer Crypto Tax Treatment

Republican Senator Cynthia Lummis has introduced an amendment seeking to reform what she describes as “unfair tax treatment” of digital assets in the US. Lummis explained that under the current system, crypto miners and stakers face double taxation — once when they receive block rewards and again when those assets are sold.

The proposed amendment would exempt crypto transactions under $300 from taxation, with a $5,000 annual cap, and would also apply to stablecoins. Additionally, it would defer taxation on crypto earned from mining, staking, and airdrops until the assets are sold, providing clarity for users concerned about inadvertent tax violations.

Another provision in Lummis’ proposal would extend the 30-day wash sale rule to crypto, preventing traders from selling digital assets at a loss to claim a tax deduction while immediately repurchasing similar assets. 

Lummis argued on the Senate floor that these changes would “ensure Americans can use digital assets without fear of tax violations” and would promote innovation within the country.

Senate Rejects Crypto Ban on Government Officials

Earlier in the session, the Senate rejected a Democrat-backed amendment that would have banned government officials and their families from owning or promoting cryptocurrencies and other digital assets. 

Senators Jeff Merkley, Elizabeth Warren, and Jack Reed proposed the amendment to strengthen ethics rules, extending the restrictions to spouses and children of officials, and even to former special government employees for one year after leaving their roles.

Senator Lummis opposed the measure, warning that while ethical concerns are valid, the proposal “would inflict serious harm on American innovation and competitiveness.” She added that imposing such restrictions could send a signal that the US is “closed for business,” reminiscent of missing out on the early internet boom.

Meanwhile, Elon Musk reignited his feud with Trump over the bill, promising on X that he would form a new “America Party” if the spending package passes. He criticized the bill as a “disgusting abomination” that could add $3.3 trillion to the national debt over the next decade.