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The US Congress has passed the One Big Beautiful Bill, a significant budget proposal by President Trump, which, despite lacking direct crypto tax reforms, could indirectly boost Bitcoin’s market position.
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While the bill increases the national debt ceiling by $5 trillion and introduces major tax cuts for high earners, it omits anticipated cryptocurrency tax amendments, leaving the crypto community cautiously optimistic about Bitcoin’s future.
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According to COINOTAG sources, this legislation may trigger inflationary pressures that historically favor Bitcoin as a hedge, even as broader economic risks loom.
US Congress passes Trump’s Big Beautiful Bill without crypto tax changes; Bitcoin may benefit amid rising debt and inflation concerns, signaling a complex economic outlook.
Big Beautiful Bill Passes Without Crypto Tax Amendments, Impacting Bitcoin Indirectly
On July 3, the US Congress approved the One Big Beautiful Bill, a sweeping budget measure championed by President Trump. Despite expectations, the bill did not include any direct amendments to the cryptocurrency tax code. This absence came after intense lobbying and proposed provisions aimed at easing tax burdens on crypto activities such as airdrops, staking, and mining rewards.
Crypto tax experts had highlighted potential reforms, including Senator Cynthia Lummis’s proposal to eliminate the “double taxation” on Bitcoin miners, which currently taxes miners both upon block reward receipt and subsequent Bitcoin sales. However, these amendments failed to gain traction amid partisan divisions and last-minute legislative negotiations.
While the bill’s silence on crypto-specific regulations may disappoint some industry advocates, it nonetheless sets a macroeconomic stage that could benefit Bitcoin indirectly. The legislation’s expansion of the debt ceiling by $5 trillion signals increased government borrowing and potential monetary expansion, factors historically correlated with Bitcoin’s appeal as a store of value.
Legislative Dynamics and Crypto Tax Reform Challenges
The legislative process surrounding the Big Beautiful Bill underscored the complexities of integrating cryptocurrency reforms into broader fiscal policy. Efforts to attach crypto tax provisions were described by Decrypt as a “Hail Mary” attempt, reflecting the contentious and fragmented political environment.
Despite bipartisan interest in modernizing crypto tax laws, the bill’s final iteration prioritized urgent fiscal measures over digital asset considerations. This outcome illustrates the ongoing challenge for crypto advocates to secure meaningful regulatory clarity within traditional legislative frameworks.
Economic Implications of the Bill: Inflation Risks and Bitcoin’s Potential Upside
The bill’s approval significantly raises the US government’s borrowing capacity, increasing the national debt ceiling to historic levels. Analysts warn this could accelerate inflationary pressures, which traditionally erode fiat currency purchasing power.
Jessica Riedl of the Manhattan Institute emphasized the unprecedented scale of deficit spending under President Trump, noting it surpasses levels seen since the Johnson administration. This fiscal trajectory may prompt increased money printing, a scenario that crypto analyst Ranjay Singh suggests could be “good for BTC in the long run.”
Nigel Green, CEO of deVere Group, observed market reactions including rising long-term yields and price increases in inflation-resistant assets such as gold and Bitcoin. These trends reflect investor concerns about currency devaluation and a flight to alternative stores of value.
However, the bill’s benefits to Bitcoin come with economic trade-offs. It introduces substantial tax cuts for millionaires and wealthy estates while proposing cuts to essential social programs and imposing higher tariffs on international trade. These measures could exacerbate economic inequality and disrupt global commerce, potentially fueling broader financial instability.
Tax Cuts, Social Program Reductions, and Trade Tariffs: A Complex Fiscal Landscape
The bill’s tax provisions include a 3% after-tax income increase for earners above $1 million and a quadrupling of state and local tax deductions for middle-income earners. Estate tax exemptions were also raised significantly, favoring wealthier demographics.
To offset these fiscal expansions, the bill proposes reductions in programs like Medicaid and the Supplemental Nutrition Assistance Program, affecting vulnerable populations. Additionally, tariff hikes of 20%-30% on imports from approximately ten countries are expected, potentially increasing consumer costs and straining international relations.
Nigel Green characterized the legislation as a “high-stakes gamble with inflation” that could reshape the US trade and spending model permanently, with global repercussions.
Washington’s Crypto Agenda: Upcoming Legislative Initiatives and ‘Crypto Week’
Amid the broader economic debates, pro-crypto lawmakers in Washington are advancing targeted legislation to address digital asset regulation. On July 3, Senator Cynthia Lummis introduced a bill aimed at correcting tax inequities for Bitcoin miners and establishing de minimis exemptions for small crypto transactions.
Furthermore, key Republican leaders have declared the week of July 14 as “Crypto Week,” during which they intend to advance three significant bills: the CLARITY Act to provide a comprehensive crypto regulatory framework; the Anti-CBDC Surveillance State Act to prohibit a government-issued digital dollar; and the GENIUS Act to regulate stablecoins and set issuer standards.
These initiatives reflect a growing legislative focus on creating a balanced regulatory environment that fosters innovation while addressing risks associated with digital currencies.
Legislative Momentum and Industry Outlook
President Trump has also urged Congress to expedite the STABLE Act, which targets stablecoin regulation, underscoring the administration’s increasing engagement with crypto policy. This momentum suggests that while the Big Beautiful Bill sidestepped crypto tax reforms, the industry’s regulatory landscape is poised for significant developments in the near term.
Market participants and industry stakeholders should monitor these legislative efforts closely, as their outcomes will shape the future of cryptocurrency adoption and compliance in the United States.
Conclusion
The passage of the Big Beautiful Bill marks a pivotal moment in US fiscal policy with indirect implications for the cryptocurrency market. Although it lacks direct crypto tax reforms, the bill’s expansion of the national debt ceiling and associated inflationary risks may enhance Bitcoin’s appeal as an inflation hedge. Concurrently, upcoming legislative initiatives signal a proactive approach to crypto regulation, balancing innovation with oversight. Investors and industry observers should remain vigilant as these dynamics unfold, influencing both market behavior and regulatory frameworks.
