The One Big Beautiful Bill Act, passed on July 3 by the US Congress. The bill proposed by President Donald Trump offers very little for the crypto-industry, but could still benefit Bitcoin.
Trump’s proposed budget passed entirely on a partisan basis in the wee hours of the 3rd July. Only two Republicans opposed the controversial bill that will increase borrowing power for the US Government. Democrats have criticized the bill, and so has Tesla CEO Elon Musk and other current and ex-Trump allies.
The bill does not include proposed changes to the tax code for cryptocurrency. While the bill was being negotiated in the Senate, legislators tried to add a few crypto provisions, to no avail.
Market observers remain optimistic despite the absence of crypto-specific provisions about its knock-on effect for Bitcoin.BTCThese are not only expected, but also to be accompanied by a broader economic turmoil.
Big Beautiful Bill passes without crypto amendments
Before July 3, crypto-space observers expected a restructuring of American tax law to include cryptocurrencies.
Service Crypto Tax Crypto Tax made Easy noted Bills include clauses which redefine airdrop rules, simplify reporting for staking, and improve de minimis exemptions. This makes it simpler to spend cryptocurrency without creating a taxable transaction.
The bill is still being debated in the Senate. Senator Cynthia Lummis has also proposed an amendment to remove 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
The bill that was passed by the Senate, and then moved to the House of Representatives, did not include any crypto clauses.
The following is a list of Decrypt. The 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 is not 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 is a senior fellow with the 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 valleys and hills in the near term, “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 are ecstatic as investors rush to invest in inflation-resistant assets. However, this may be at the expense of the global economy.
This bill introduces a number tax cuts The US wealthiest will benefit. For those who earn over $1,000,000, the after-tax increase is expected to be over 3%. The estate tax exemption was also raised to $15,000,000.
According to Reuters, some 10 countries are reportedly preparing to raise tariffs on US goods. According to Reuters about 10 countries are expecting Trump’s administration sent letters on July 4, announcing tariff increases of 20%-30%.
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.”
The increase in spending by the government, coupled with increased tariffs for global trade represents an increase of about “permanent reordering of the trade and spending model,” He said.
Trump will sign into law the bill on Independence Day, July 4.
Washington will host Crypto Week
Washington’s crypto-friendly lawmakers are busy, even as the Big Beautiful Bill is preparing to impact the global 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.”
Senators are hoping to get three bills passed in a single week. These include the CLARITY Act – the crypto industry’s long-awaited framework – the Anti-CBDC Surveillance State Act – which effectively would ban a virtual dollar – and the Senate GENIUS Act – which sets up standards and regulates stablecoins.
Trump will be inaugurated in mid-June. pushed lawmakers to get the STABLE Act on his desk “ASAP,” The best time to do this is before Congress takes a break in August.
Washington appears to give the crypto industry its way, while Trump’s economic policy is controversial.
Magazine: Bitcoin vs. stablecoins showdown looms as GENIUS Act nears
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Source: cointelegraph.com
