U.S. Senate Narrowly Passes Trump Budget Bill

Key Takeaways

• The budget reconciliation bill passed 50-50, with Vice President JD Vance casting the tiebreaker vote.

• Despite lobbying, provisions for cryptocurrency taxation and oversight were not included.

• Democrats and some Republicans raised alarms over cuts to healthcare and rural hospital funding.

• Proposals for AI oversight were sidelined in favor of future legislation.

• The bill now moves to the House, where revisions are possible but unlikely to be extensive.

A Tiebreaker Decides The Vote

The legislation, officially titled the “One Big Beautiful Bill Act,” passed along razor-thin margins as the Senate vote ended in a 50-50 tie, broken by Vice President JD Vance in a rare appearance on the Senate floor early Tuesday morning.

All Senate Democrats opposed the bill, joined by three Republican senators concerned about funding cuts to public services and insufficient regulatory oversight for emerging technologies.

Despite extensive discussions, several proposed amendments failed to gain traction, including key ones related to cryptocurrency tax treatment and digital asset disclosures.

Lummis Pushes For Crypto Clarity

Wyoming Senator Cynthia Lummis, known for her advocacy in the blockchain and crypto space, signaled her intention to insert a provision addressing what she described as “unfair tax treatment” of cryptocurrency miners and stakers.

Source: X (@SenLummis)

However, no such amendment made it to the Senate floor before the final vote.

Opposition From Democrats & Some Republicans

The bill sparked vocal opposition across party lines. Senator Elizabeth Warren (D-MA) criticized the legislation for prioritizing corporate tax cuts over public healthcare.

In her words:

“Donald Trump and Republicans in Congress are planning to write a $15 billion check to Meta simply for existing, paid for by cutting healthcare for millions of Americans. They care more about helping billionaire corporations than helping you.”

Senator Jeff Merkley (D-OR) attempted to add a controversial amendment banning the president, vice president, members of Congress, and other senior government officials from owning or promoting digital assets. That measure was ultimately rejected.

What’s In The “One Big Beautiful Bill Act”?

While full details remain under review, the legislation includes:

• Major tax cuts for corporations and high-income earners

• Reductions in federal healthcare subsidies

• Increased funding for defense and border infrastructure

• Deferrals on AI regulation, pending future bills

• A provision enabling a review of digital assets by a newly formed Financial Tech Committee

Source: Cynthia Lummis

Notably absent from the final bill were any targeted cryptocurrency tax reforms or digital asset market protections, despite increasing pressure from both lawmakers and the crypto industry.

House Review & Further Amendments

Now that the Senate has passed the bill, it will return to the U.S. House of Representatives, where Republicans hold a slim majority.

Notably, any amendments adopted in the House would need to be reconciled with the Senate version before final passage.

Other Pending Crypto Legislation

While the budget bill dominated headlines, Congress is simultaneously working on several major crypto and fintech laws, including:

• The GENIUS Act: Establishes a national framework for stablecoin regulation. Passed the Senate on June 17th.

• The BITCOIN Act of 2025: Proposes the creation of a national Bitcoin reserve.

• The CLARITY Act: Focuses on establishing clear digital asset market structures. It passed out of committee in the House in June.

However, with budget and reconciliation proceedings taking priority, votes on these bills are likely to be delayed until late 2025 or early 2026.

FAQ

What is the “One Big Beautiful Bill Act”?

It is a budget reconciliation bill pushed by Donald Trump and Republican leaders, including tax cuts for corporations, healthcare spending reductions, and limited engagement with digital asset regulation.

Why was Vice President JD Vance needed for the vote?

The Senate vote was tied 50-50. As President of the Senate, the Vice President has the authority to cast a deciding vote in the event of a tie.

Were any crypto provisions included in the bill?

No. Although discussed, especially by Senator Cynthia Lummis, specific crypto-related amendments did not make it into the final legislation.

What happens next?

The bill heads back to the House of Representatives, where it could be amended before final approval and signature by the President.

Is AI regulation included in this bill?

No. While discussed, AI regulatory measures were excluded and are expected to be addressed in separate legislation later this year.