On July 3rd, the US Congress passed the One Big Beautiful Bill Act. Although President Donald Trump’s bill is not very beneficial to crypto, it may still be beneficial for 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. The Senate tried, without success, to include crypto-related provisions in the bill.
Market observers remain optimistic despite the absence of crypto-specific provisions about its knock-on effect for Bitcoin.BTCBut they are expected to occur amid an economic downturn.
Big Beautiful Bill passes without crypto amendments
As the date of July 3 approached, observers in the cryptocurrency space anticipated a change to the American tax code that would revolve around crypto currencies.
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.
As the Senate debated the bill, Senator Cynthia Lummis suggested an addition that would eliminate the “double tax” on Bitcoin miners. Lummis says that miners currently pay tax twice. First when they receive their block reward, then when they sell Bitcoin.
Related: US Senate passes Trump’s budget bill without provision on crypto taxes
Even though the draft bill passed by the Senate before moving to the House of Representatives contained no clauses on crypto, it was still a good thing that the Senate had not included any.
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 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 While there might be some hills and valleys on the short-term, “More debt can lead to more money printing. That’s good for BTC in the long run.”
Nigel Green is the CEO of deVere Group. He spoke to 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 world’s economy.
Bill will bring in a variety of new provisions. 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%. Also, the estate tax exemptions have 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 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 absolute “permanent reordering of the trade and spending model,” He stated.
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’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 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
