Trump’s ‘Big Beautiful Bill’ Accidentally Helps Bitcoin, Analysts Say 🤑

by

On the third of July, the US Congress, in a moment of what can only be described as legislative brilliance, passed the One Big Beautiful Bill Act. Now, while this bill, a brainchild of President Donald Trump, doesn’t directly cater to the crypto community, it’s like a well-timed wink to Bitcoin (BTC) enthusiasts. 🤫

The budget proposal, which sailed through in the late hours of July 3, almost entirely along partisan lines, with only two Republicans daring to vote against it, significantly boosts the US government’s borrowing power. This has, unsurprisingly, earned it a fair share of criticism from Democrats and even some of Trump’s own allies, like the ever-vocal Elon Musk. 🚀

Interestingly, the bill, despite its grandiose title, failed to include any amendments to the cryptocurrency tax code. Lawmakers tried their best to sneak in a few crypto-friendly provisions, but alas, it was not to be. 🙁

However, market observers, ever the optimists, are predicting that the bill’s impact on the broader economy could inadvertently benefit Bitcoin. But let’s not get too excited; this might come with a side of economic turmoil. 🌪️

Big Beautiful Bill Passed Without Any Crypto Amendments

Leading up to July 3, the crypto community was abuzz with anticipation, hoping for a reordering of the American tax code around cryptocurrencies. Services like Crypto Tax Made Easy were eagerly pointing out clauses that could redefine rules around airdrops, simplify staking reporting, and create better de minimis exceptions, making it easier to spend crypto without triggering a taxable event. 🎉

Senator Cynthia Lummis even suggested an amendment to remove the “double tax” on Bitcoin miners, a move that would have been a game-changer. However, the final draft that passed the Senate and moved to the House of Representatives was disappointingly devoid of any crypto-related clauses. 🤷‍♀️

According to Decrypt, the attempts to include crypto provisions were a “Hail Mary” in a political process already fraught with in-fighting and last-minute bargaining. 🤥

Bill Can Still Benefit Bitcoin, But Broader Economic Outlook Isn’t Good

Despite the lack of direct attention to digital assets, market observers are optimistic that Bitcoin could see a significant price spike. The bill raises the national debt ceiling by a staggering $5 trillion, a move that could lead to more money printing, which is generally good for BTC in the long run. 💸

Jessica Riedl, a senior fellow at the Manhattan Institute, told The Washington Post, “President Trump has added more red ink than any president since at least LBJ, and he’s doing it on top of deficits that had already been soaring.”

Crypto analyst Ranjay Singh noted, “While there may be hills and valleys in the short term, more debt can lead to more money printing. That’s good for BTC in the long run.”

Nigel Green, CEO of deVere Group, told CryptoMoon, “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.”

While Bitcoin hodlers might be celebrating, the bill and the potential Bitcoin gains come at a significant cost to the world economy. The bill introduces tax cuts for the wealthiest Americans, with earners over $1 million seeing an after-tax income boost of over 3%, and state and local tax deductions increasing from $10,000 to $40,000 for those earning less than $500,000 annually. Estate tax exemptions were also bumped up to $15 million. 🎉

To offset these tax cuts and increased government spending, the bill proposes cuts to critical benefits programs like the Supplemental Nutrition Assistance Program and Medicaid, as well as increased tariffs. According to Reuters, some 10 countries are bracing for 20%-30% tariff hikes on July 4. 🚨

Green added, “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 bill, set to be signed into law on July 4, the US’s Independence Day, represents a “permanent reordering of the trade and spending model,” he stated. 🇺🇸

Crypto Week Incoming in Washington

While the world economy and Medicaid recipients brace for the impact of the Big Beautiful Bill, pro-crypto lawmakers in Washington are already gearing up for action.

On July 3, Senator Lummis introduced a solo bill to address her concerns with the tax code for miners. The bill also includes a de minimis exemption for digital asset transactions and capital gains of $300 or less, with an annual cap of $5,000. 📝

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 senators aim to pass three separate bills in a week: the CLARITY Act, the long-awaited crypto industry framework; the Anti-CBDC Surveillance State Act, which would effectively ban a digital dollar; and the Senate’s GENIUS Act, which regulates stablecoins and sets standards for issuers.

In mid-June, Trump urged lawmakers to get the STABLE Act on his desk “ASAP,” particularly before Congress goes on break in August.

The crypto industry seems to be getting its way in Washington, while the broader economic story of the Trump administration remains a topic of heated debate. 🤔

Read More

2025-07-04 16:34