Running Out Of Time Despite The Bill Being Passed

In the hectic final hours of heated negotiation over the "One Big, Beautiful Bill", pro-crypto senators were working with industry experts to work out the possible benefits of the bill for the different stakeholders, including stakers, miners and businesses.

But before everything could be sorted out, the clock ran out, with only the crypto tax provision being ready for showtime.

In the end, The House passed the bill with a razor-thin 215 to 214 vote, with Vice President JD Vance casting in the tie-breaking vote to pass the megabill on Tuesday.

One crypto policy leader mourned the outcome as a "missed opportunity" for the industry, saying

"We just ran out of time."

Despite the initial setback, a spokesperson for Senator Cynthia Lummis offered a rosier outlook, saying all the things that were missed from the bill will be addressed through amendments.

"Senator Lummis had productive conversations with Chairman Crapo and other Senate Finance Committee members over the last few weeks, and looks forward to continuing her work with the rest of the committee to fix these important tax issues at the later date."

While it is unclear which crypto provisions Senator Lummis would focus on, but experts speculate that she would most likely include a provision to clarify that rewards earned from staking and mining crypto should only be taxed once sold, not at the moment of their generation.

Lummis' amendment would waive taxes on crypto transactions under $300 with a $5,000 yearly total cap, including stablecoins, according to an explainer sheet from Lummis' office.

Another provision would also apply the 30-day wash sale rule to crypto, which would ban selling a digital asset for a loss and replacing it with a similar asset 30 days before or after the sale.

Senate Rejects Ban on Political Crypto Promotion

Earlier in the session, a Democrat-led amendment to ban government officials and their families from owning or promoting digital assets—including cryptocurrencies, memecoins, NFTs, and stablecoins—was voted down.

The proposal, championed by Senators Jeff Merkley, Elizabeth Warren, and Jack Reed, would have extended restrictions to former special government employees, such as Elon Musk, for up to a year after leaving office.

But Senator Lummis has opposed the measure, warning it would stifle innovation and harm U.S. competitiveness.

She argued that such sweeping restrictions would have sent a message that “America is closed for business” had they been enacted during the early days of the internet.

Elon Musk Threatens New Political Party Over Bill

The debate over the bill has reignited a public blowout between Elon Musk and President Trump.

Musk, who was previously the biggest donor and supporter of President Trump, has been vocal in his opposition to the legislation, criticizing its projected $3.3 trillion addition to the national debt and calling it a “disgusting abomination.”

On X, Musk pledged to form a new “America Party” if the bill passes, arguing that the country needs an alternative to the “Democrat-Republican uniparty”.

He also vowed to campaign against any lawmaker who supports the bill, stating

“They will lose their primary next year if it is the last thing I do on this Earth”.