U.S. Senate Passes “Beautiful Act” — Crypto Tax Relief Left Out, Markets on Edge

TradingKey – On Tuesday, July 1, the U.S. Senate narrowly passed President Trump’s “Beautiful Act” with a 51–50 vote, but crypto tax reform provisions were excluded, sparking concerns across global financial markets.

Just hours before the vote, Senator Cynthia Lummis, a leading crypto advocate and sponsor of the BTC Reserve Act, pushed to include a crypto tax optimization amendment in the final version. The amendment aimed to address issues like double taxation on mining and staking rewards and introduce a de minimis exemption for small crypto transactions. However, the proposal was ultimately left out of the Senate’s deliberation process.

Now that the Senate has passed the bill, it heads to the House of Representatives, where debate and a vote are expected Wednesday. If approved, the bill will be sent to President Trump for signature.

Trump has described the Beautiful Act as “bigger than tariffs”, stating that if enacted, it could result in a 58% tax increase. The sweeping legislation includes major changes to Medicaid, tax policy, and federal spending, and is expected to have far-reaching effects on global markets.

The crypto market has already reacted: Bitcoin (BTC) dropped nearly 2% to $105,000 early Tuesday, reflecting investor anxiety over the bill’s potential impact.