Senators in Washington, D.C., are still locked in a marathon session debating President Donald Trump’s massive tax and spending bill, officially called the “One Big Beautiful Bill Act.”
The session has already stretched beyond 17 hours, with lawmakers racing to vote on a flood of amendments.
The bill, which passed the House in May by a razor-thin 215 to 214 vote, is now in the hands of the Senate, where Republicans hold only a slight majority. Trump is urging lawmakers to get the bill passed by Friday, July 4.
A Crucial Moment for Crypto
While the broader bill includes major spending and tax proposals, one of the most closely watched parts of the discussion, for the crypto world at least, is a proposed amendment that could change how the IRS taxes digital assets.
If passed, it would mark a major shift in U.S. crypto policy and offer long-sought clarity for crypto users and investors.
Fixing Everyday Crypto Taxes
One part of the proposed amendment would create a de minimis exemption for crypto transactions under $300, with a $5,000 annual cap. This means small purchases, like using Bitcoin to buy coffee or Ethereum to pay a network fee, would no longer trigger capital gains reporting.
Right now, even tiny crypto transactions are treated as taxable events, which makes spending digital assets in daily life a tax headache. Many see this rule as a key reason why crypto payments have not gone mainstream in the U.S.
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Lummis Pushes for Fairer Rules
Republican Senator Cynthia Lummis is leading the charge with her amendment aimed at fixing what she calls the “unfair tax treatment” of digital assets.
She argues that crypto miners and stakers face double taxation, once when they receive rewards and again when they sell. Her proposal would delay taxation on mining, staking, and airdrops until the assets are sold.
Another part of the amendment would offer tax relief for crypto lending agreements. Currently, many of these are unclear in tax law, leaving users uncertain and exposed to possible penalties.
Wash Sale Rule for Crypto
Lummis’ amendment also includes a clause to bring crypto under the 30-day wash sale rule. This would block investors from selling a crypto asset at a loss and immediately buying back a similar one just to claim a tax benefit.
Traditional stocks already follow this rule, but crypto has not—until now. If included, this move could close a long-used tax loophole in the crypto market.
Tight Deadline, Unclear Outcome
As the clock ticks down, crypto policy advocates are working with their Senate allies to see which parts of the amendment can realistically be added to the bill.
The voting process is already tense, with many Republican defections and heated debates. Lawmakers want to score a win for crypto but are being careful not to derail the broader bill.
Even tech moguls have weighed in, Elon Musk warned that if this “insane spending bill” passes, it could spark the creation of a new “America Party” the very next day.
He argued that the country needs an alternative to the Democrat‑Republican uniparty so that people truly have a voice. His comment adds to the growing tension around the bill’s scope and timing.
Why It Matters?
If any of these crypto-related changes make it into the final law, it could be a big win for the digital asset industry in the U.S. A clear tax exemption for small crypto payments could help move crypto into everyday use.
It would also ease the burden on users who now need to track gains and losses on even the smallest of transactions. Tax clarity for staking, mining, and lending would also reduce confusion and boost confidence among users.