The One Big Beautiful Bill Act was passed by the US Congress on July 3. The bill proposed by President Donald Trump offers very little for the crypto-industry, but could still benefit Bitcoin.
Trump’s controversial budget was passed by the US Senate in the early hours of Wednesday, July 3. Only two Republicans were against it. The bill will allow the US to borrow more money. Democrats have criticized the bill, and so has Tesla CEO Elon Musk and other current and ex-Trump allies.
Bills relating to cryptocurrency tax codes were conspicuously absent. The Senate tried, without success, to include crypto-related provisions in the bill.
Market analysts are confident that Bitcoin will benefit from the new crypto laws despite their absence.BTCBut they are expected to occur amid an economic downturn.
Big Beautiful Bill passes without crypto amendments
Before July 3, crypto-space observers expected a restructuring of American tax law to include cryptocurrencies.
Crypto Tax Service – Crypto Tax Made Simple noted The bill contains clauses that redefine the rules for airdrops and smoothen reporting requirements. It also creates better exceptions to de minimis, which makes it easier to use cryptos without having them trigger a tax event.
As the Senate debated the bill, Senator Cynthia Lummis suggested an addition that would eliminate the “double tax” on Bitcoin miners. According to Lummis’s report, Bitcoin miners pay taxes twice: first, when they get the block rewards, and again, when they sell their Bitcoin.
Related: US Senate passes Trump’s budget bill without provision on crypto taxes
Even though the draft bill passed the Senate but moved on to the House of Representatives didn’t contain any clauses regarding crypto.
As per DecryptThe effort to include crypto provisions was a “Hail Mary” In a process that is already fraught with internal fighting and bargaining at the last minute.
Bitcoin can benefit Bill, but the broader economy isn’t looking good
Despite the lack of attention to digital assets, market observers are optimistic that Bitcoin could see a significant price spike as the bills hike the national debt ceiling — the amount of money the government is allowed to borrow — by $5 trillion, a historic amount.
Jessica Riedl Senior Fellow at Manhattan Institute told The Washington Post “President Trump has added more red ink than any president since at least LBJ [Lyndon B. Johnson], and he is doing it on top of deficits that had already been soaring.”
Crypto analyst Ranjay Singh said Although there will be some ups and downs, the long-term trend is upward. “More debt can lead to more money printing. That’s good for BTC in the long run.”
Nigel Green of the advisory firm deVere Group told Cointelegraph. “Markets have already begun to respond. Long-term yields are creeping up. Oil has moved higher. Gold and Bitcoin are rising on renewed fears about the erosion of purchasing power.”
Bitcoin hodlers may rejoice when investors flock to assets that are inflation resistant, but the cost and Bitcoin gains could be greater for the global economy.
This bill introduces a number tax cuts For the US’s richest. The US’s wealthiest will see a boost in their income after tax of more than 3%. State and local taxes deductions for people earning under $500,000 per year are also being increased from $10,000 up to $40,000. The estate tax exemptions have also been increased from $10 million to $15 millions.
Tariffs are expected to be used to compensate for the tax cuts and increase in government spending. This bill also aims to cut back on critical programs such as Medicaid and Supplemental Nutrition Assistance Program. Reuters reports that 10 countries have been affected by the trade war. expecting Letters from the Trump Administration announcing a 20%-30% increase in tariffs for July 4th.
Green said “This bill throws open the taps on spending while throttling the flow of global goods. It’s a high-stakes gamble with inflation — and one that the rest of the world will end up paying for.”
Along with the increase in global tariffs, this represents an increase in public spending. “permanent reordering of the trade and spending model,” He said.
Trump plans to sign this bill into law July 4, Independence Day in the US.
Washington will host Crypto Week
Washington lawmakers who support crypto are working hard to prepare for the Big Beautiful Bill’s impact on the Medicaid program and the world economy.
Lummis introduced a solo bill to address Her concerns with regard to the tax code applicable to miners are outlined above. Bill also includes a $300 de minimis capital gain exemption and a digital asset transaction. The annual limit is $5,000.
Related: US Republicans declare ‘Crypto Week’ to mull 3 crypto bills
Meanwhile, House Finance Committee Chair French Hill, House Agriculture Committee Chair Glenn Thompson and Speaker Mike Johnson — all Republicans — announced that the week of July 14 would be “Crypto Week.”
The Senate wants to pass 3 separate bills within a week. They are the CLARITY Act – the much-anticipated crypto industry framework – the Anti CBDC Surveillance State Act, which will effectively prohibit a digital currency, and the Senate’s GENIUS Act, which will regulate stablecoins, and set standards for issuers.
Trump’s mid-June announcement was made by the White House. pushed lawmakers to get the STABLE Act on his desk “ASAP,” Particularly before Congress breaks in August.
Washington seems to favor the crypto industry, but the economics of Trump’s administration are more controversial.
Magazine: Bitcoin vs. stablecoins showdown looms as GENIUS Act nears
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Source: cointelegraph.com
