US President Donald Trump's massive legislative package, dubbed the “Big Beautiful Bill,” which he aims to pass into law by July 4 Independence Day, has begun to face delays due to intense debates and amendment proposals in the Senate. The bill's provisions, which include budget and tax reforms as well as provisions related to cryptocurrencies, have sparked disagreements among members of Congress. This situation has further complicated the process, while some important regulations have already begun to emerge.
Crypto tax exemption proposal: Lummis takes the stage
Republican Senator Cynthia Lummis has proposed a tax reform that closely affects crypto users and miners in the US by adding a provision to the bill. According to Lummis' proposal, the goal is to exempt kripto transactions under $300 and transactions totaling less than $5,000 annually from taxation. Additionally, crypto income obtained through airdrops, staking, and mining is also expected to be exempt from taxation until sold.
Senator Lummis said in a statement, “Miners and stakers have been taxed twice for years: first when they receive the block reward, and second when they sell. We must put an end to this injustice.” The proposal also includes exempting most crypto lending agreements from taxation and applying the 'wash-sale' (buy-sell cycle for tax advantage) rules to be applied to crypto.
This move is seen as part of Lummis' long-standing regulatory efforts, known for her crypto-friendly stance among Republicans. Indeed, Lummis had previously played a leading role in drafting the GENIUS Act, which covers stablecoin regulations.
Warren rejects strict crypto ban
Meanwhile, a proposal led by Democratic Senators Elizabeth Warren and Jeff Merkley to ban government officials and their family members from owning cryptocurrency assets or promoting them in this field was rejected by the Senate. The bill had been expanded to cover many public officials, including the president, vice president, and members of Congress, as well as their spouses and children. It even aimed to restrict temporary public officials such as Elon Musk for one year after leaving office.
Lummis opposed the proposal, arguing that “I understand the ethical concerns, but this proposal undermines American innovation and competitiveness,” claiming that the scope of the bill was excessive.
Trump's July 4 goal in jeopardy
The bill passed the House of Representatives in May by a narrow margin of 215 to 214. However, the Republicans' slim majority in the Senate is prolonging the process. The process, known as “Vote-a-rama,” in which hundreds of amendments are put to a quick vote, has been going on for days. So far, negotiations on hundreds of provisions have continued into the night, and no agreement has been reached yet. As a result, the likelihood of the bill returning to the House of Representatives in time to be enacted by July 4 appears to have diminished.
Elon Musk's harsh response: “I'll start a new party”
The spending authorities and potential debt increase introduced by the bill have also prompted Tesla CEO Elon Musk to take action. Musk, who previously supported Trump's campaign, posted on X (formerly Twitter), “If this insane spending bill passes, I will start a new party the next day,” signaling the launch of a new political movement called the “America Party.”
Musk argued that the bill would add $3.3 trillion to the U.S. debt over the next 10 years, saying, “Every member of Congress who promised to reduce government spending and yet voted yes on this bill should be ashamed. I will do everything in my power to unseat them in the next election.”
