Senate Battles President Trump’s Spending Bill as Crypto Tax Fight Heats Up

Known as the "One Big Beautiful Bill Act", the bill has been under debate for more than 17 hours.

The House approved the bill back in May with a 215-214 vote. The Senate, where Republicans also hold a slim majority, faces a similar challenge. Both sides have submitted many amendments, including a few that could change how cryptocurrency is taxed in the US.

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One such proposal comes from Senator Cynthia Lummis. Her amendment aims to change how crypto earnings are handled by tax authorities. Currently, individuals who mine or stake cryptocurrency are taxed twice, once when they receive the tokens and again when they sell them.

Lummis plans to delay taxes on crypto earned through mining, staking, or airdrops until the assets are actually sold. It also proposes that most crypto lending deals should not be taxed upfront.

Additionally, Elon Musk, who once supported President Trump, posted on X that if the bill becomes law, he will start a new political group called the "America Party". He stated that there needs to be a real alternative.

Musk also criticized the bill’s spending plans, which could add $3.3 trillion to the national debt over the next decade. He called out lawmakers who campaigned on cutting spending but are backing the bill.

Meanwhile, the CLARITY Act, which aims to define crypto rules, passed two House committees and advances to a full vote. What did the bill sponsor, Rep. French Hill, say about it? Read the full story.