The US Senate’s passage of Trump’s budget bill without crypto tax provisions offers temporary relief to the industry, avoiding measures like the unpopular “crypto tax gap” proposal. This exclusion reflects lobbying successes by digital asset advocates, who argued such rules would stifle innovation and drive businesses offshore. The decision removes a near-term regulatory overhang for exchanges and investors.
However, New York Attorney General Letitia James criticized the bill’s lack of “necessary guardrails” for investor protection, signaling ongoing regulatory scrutiny. Her intervention suggests state-level regulators may fill perceived federal gaps, potentially creating a patchwork of compliance requirements. This maintains uncertainty despite the federal tax win.
The bill’s passage amid the Musk-Trump feud also diverted attention from crypto-specific implications. Broader concerns about the legislation’s $5 trillion debt impact and clean-energy subsidy reversals dominated market discourse, temporarily overshadowing the tax provision exclusion as a crypto catalyst.
