Trump’s “big, beautiful bill” passed the Senate, but without any provisions related to the crypto industry.
Trump’s budget bill passed the Senate, but the crypto industry has little to celebrate. On Tuesday, June 1, the U.S. Senate passed the sweeping budget bill, with a razor-thin margin. Yet, despite Donald Trump’s past vocal support for the crypto industry, the bill had no crypto-related provisions.
Specifically, there was no mention of “digital assets,” “Bitcoin,” “Ethereum,” “crypto,” “web3,” or “blockchain” anywhere in the over 1000-page bill. This is despite specific efforts by pro-crypto Senators to include tax breaks for the industry in the bill.
Notably, Senator Cynthia Lummis, a vocal advocate for digital assets, argued for changing the tax code for crypto mining and staking. She argued that miners and stakers were taxed twice, once when they received block rewards and then again when they had to sell them.
Miners and stakers seek relief from taxation
Currently, the IRS classifies profits from crypto mining and staking as income, which is taxed at fair market value at the time of receiving them. Once the miners sell their crypto, they have to report capital gains and pay a flat rate on these profits.
While these taxes don’t strictly entail double taxation, miners and stakers complain that the system is overly burdensome. Namely, they have to pay taxes before realizing any profits, or before converting any crypto to fiat.
Lummis also advocated for tax exemptions for small crypto transactions, or a “de minimis” rule. These are often transactions that involve small payments for gas fees, small transfers, etc. While transactions don’t generate much tax income, they are a significant burden when it comes to tax reporting.
The crypto industry was one of the biggest donors in the November 2024 elections. They supported candidates from both parties, raising over $190 million for their campaigns.
