U.S. senators are engaged in an extended vote-a-rama concerning amendments to Donald Trump’s extensive tax and spending bill, with one lawmaker advocating for tax cuts related to cryptocurrency.
Debates in the Senate over President Trump’s substantial tax and spending proposal could stretch through the night as senators seek to add various amendments, including those impacting the crypto sector. The Senate’s vote-a-rama—a fast-paced process where lawmakers propose and vote on amendments—has been ongoing for 17 hours, with senators from both parties pushing to include hundreds of changes.
Voting may continue into the early hours of Tuesday, local time in Washington, D.C., as Trump aims to have the bill passed by Friday, July 4. The House approved the bill in May with a narrow 215 to 214 margin, and the slim Republican majority in the Senate suggests that the outcome may also be tightly contested.
Senator Cynthia Lummis, a Republican, has introduced an amendment designed to address what she describes as the “unfair tax treatment” of cryptocurrencies, ensuring that Americans can utilize digital assets without the risk of tax violations.
“For years, miners and stakers have faced double taxation—first when they receive block rewards and again upon selling them,” Lummis stated. Her amendment proposes to exempt taxes on crypto transactions under $300, with an annual cap of $5,000, which would include stablecoins. Additional provisions would exempt most crypto lending agreements from taxation and specify that income from airdrops, mining, and staking would not be taxed until sold.
Source: Cynthia Lummis
Another provision would extend the 30-day wash sale rule to cryptocurrencies, prohibiting the sale of a digital asset at a loss and its replacement with a similar asset within 30 days before or after the sale.
Political Crypto Promotion Amendment Rejected
Earlier on Monday, the Senate rejected a Democrat-backed amendment aimed at preventing government officials and their families from offering or promoting various digital assets. Supported by Democratic Senators Jeff Merkley, Elizabeth Warren, and Jack Reed, the amendment sought to ban the president, vice president, members of Congress, and other government officials from owning or promoting cryptocurrencies, memecoins, tokens, non-fungible tokens (NFTs), or stablecoins.
The proposed ban would also have included spouses and children of these officials, as well as former special government employees—like Elon Musk—for up to a year after their tenure.
Senator Cynthia Lummis was among those who opposed the amendment, expressing her understanding of the “ethical concerns” but arguing that it would “seriously harm American innovation and competitiveness.” She criticized the amendment for being excessively broad, especially regarding restrictions on officials’ families, suggesting that a similar law in the early days of the internet would have sent a message that America is “closed for business.”
Musk Threatens to Form New Political Party
Elon Musk, who previously served as Trump’s government cost-cutting czar and has had public disagreements with the president regarding the “Big Beautiful Bill,” has reignited the controversy. He stated on X that he would create a new political party if the bill passes.
“If this insane spending bill passes, the America Party will be formed the next day,” Musk wrote on Monday. “Our country needs an alternative to the Democrat-Republican uniparty.”
Musk has criticized the bill’s government spending provisions, which are projected to increase the national debt by $3.3 trillion over the next decade, labeling it a “disgusting abomination.” The world’s richest man, who previously supported Trump’s campaign, has threatened to unseat any lawmakers who back the bill.
Source: Elon Musk
“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” Musk wrote.
“They will lose their primary next year if it is the last thing I do on this Earth,” he added.
Source: Cointelegraph Edited by Bernie S.