The US Senate has approved a bill that forms the backbone of President Donald Trump's policy agenda, but it does not include a provision to simplify and reduce crypto taxation. Senator Cynthia Lummis had proposed changes to the US tax approach, including exempting small-scale crypto transactions from capital gains tax, but her amendment was not included in the bill.
The bill was passed by a narrow margin, with Vice President JD Vance casting the deciding vote. The legislation will now go to the House of Representatives, where it is expected to face further debate. The bill aims to overhaul US government spending and is estimated to increase the budget deficit by over $3 trillion.
Senator Lummis' proposals will now be pursued through separate legislation. The digital assets industry had lobbied for the amendment, but it was not successful. The bill's passage has been welcomed by Senate Majority Leader John Thune, who described it as a way to provide tax relief for hard-working Americans and boost the US economy.
However, Democrat Senator Elizabeth Warren has criticized the bill, arguing that it will benefit big tech firms at the expense of ordinary American families.