Main Points:
- Senate Advances the “One Big Beautiful Bill”: June 28, 2025 procedural vote moves the 940-page budget reconciliation measure forward.
- Lummis’s Crypto Tax Amendment Introduced: June 30, 2025, Senator Cynthia Lummis proposes de minimis exemption and staking/mining fix.
- Key Provisions:
- Exempts transactions under $300 from capital gains reporting.
- Clarifies taxation to avoid double-taxing mining and staking rewards.
- Introduces fair-value accounting rules for crypto-holding companies.
- Industry Rally: Major crypto PACs mobilize over $100 million in support; advocacy groups push Senate leaders.
- Legislative Outlook: Senate vote-a-rama continues through July 4 deadline; final fate uncertain, hinges on Lummis, Finance Committee Chair Mike Crapo, and GOP leadership.
Background: The “One Big Beautiful Bill”
Senate Republicans are fast-tracking former President Trump’s signature budget reconciliation package—officially the “Budget and Reconciliation Act of 2025”—informally dubbed the “One Big Beautiful Bill.” In a razor-thin 51–49 vote on June 28, 2025, the bill advanced to debate, carrying sweeping tax cuts, defense and border security funding, and large spending reductions aimed at deficit control. President Trump has publicly demanded Senate passage by July 4, 2025, warning of political consequences for dissenters.
Key Provisions in Lummis’s Amendment
Under Senator Cynthia Lummis’s push on June 30, 2025, the amendment seeks to:
- De Minimis Exemption (Under $300):
- Transactions under $300 would be exempted from capital gain calculations, streamlining everyday use (e.g., buying coffee with Bitcoin).
- Mining & Staking Tax Clarification:
- Rewards taxed only once—at sale—resolving what Lummis calls “double taxation” when miners/stakers are taxed at receipt and disposition.
- Fair-Value Accounting for Crypto Holders:
- Companies holding digital assets would adopt mark-to-market accounting, aligning tax treatment with economic reality.
Industry Reaction and Advocacy
Crypto lobbying groups, including the Digital Chamber, lauded the amendment as a “Hail Mary pass” to rescue crypto payments from onerous tax burdens. Bitcoin Magazine CEO David Bailey is coordinating a PAC fundraising campaign exceeding $100 million to support pro-crypto legislators and pressure Finance Committee Chair Mike Crapo. Conversely, opponents warn of lost revenue and accuse Republicans of undermining broader fiscal goals.
Legislative Outlook and Timeline
The Senate’s “vote-a-rama” process runs through the July 4 deadline, during which hundreds of amendments are considered. While Lummis’s proposal enjoys GOP backing, its fate is unclear in the face of intra-party splits and Democrat opposition. Final inclusion will be negotiated among Senator Lummis, Chairman Crapo, and Senate Majority Leader John Thune.
Figure 1: Legislative Timeline.
Implications for Crypto Payments
Should Lummis’s amendment pass, the $300 de minimis exemption could unlock real-world crypto payments by eliminating the need for meticulous capital gains reporting on microtransactions. Clarifying staking and mining taxes may further bolster DeFi and proof-of-stake network participation, reducing compliance costs for validators and stakers.
Conclusion
Senator Cynthia Lummis’s crypto tax amendment represents a landmark attempt to integrate digital assets into mainstream financial legislation. By advocating for practical thresholds and fair tax treatment, the proposal aims to catalyze everyday crypto use and foster innovation. With the Senate racing toward a July 4 deadline, all eyes are on the “One Big Beautiful Bill” and whether this “crypto carve-out” survives the final legislative gauntlet.
