On July 3, the US Congress passed into law the One Big Beautiful Bill Act. President Donald Trump’s bill offers little to the crypto industry, but it could benefit Bitcoin all the same.
Trump’s budget proposal passed in the late hours of July 3 entirely along partisan lines; only two Republicans voted against the controversial bill, which will significantly increase the US government’s borrowing ability. It has drawn significant criticism from Democrats and even from current and former Trump allies like Tesla CEO Elon Musk.
Notably absent from the bill were proposed amendments to the cryptocurrency tax code. As the bill worked through the Senate, lawmakers attempted to tack on a number of provisions regarding crypto, but to no avail.
Despite the lack of specific crypto provisions, market observers are optimistic about the knock-on effects it will have for Bitcoin (BTC), but these are projected to come amid a wider economic upheaval.
Big Beautiful Bill passed without any crypto amendments
Leading up to July 3, observers in the crypto space were anticipating a reordering of the American tax code around cryptocurrencies.
Crypto tax service Crypto Tax Made Easy noted clauses in the bill that would redefine rules around airdrops, smooth out reporting requirements for staking and create better de minimis exceptions, making it easier to spend crypto without triggering a taxable event.
While the bill was still under debate in the Senate, Senator Cynthia Lummis also suggested an amendment that would remove the “double tax” on Bitcoin miners. Per Lummis, miners are currently taxed twice, first when they receive the block reward and then again when they sell the Bitcoin.
Related: US Senate passes Trump’s budget bill without provision on crypto taxes
Still, the bill draft that passed the Senate and moved onto the House of Representatives did not contain any clauses about crypto.
According to Decrypt, the efforts to include crypto provisions were a “Hail Mary” in a political process already rife with in-fighting and last-minute bargaining.
Bill can still benefit Bitcoin, but broader economic outlook isn’t 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 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 that, 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 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.”
Still, while Bitcoin hodlers rejoice as investors flee to inflation-resistant assets, the bill and the Bitcoin gains may come at a greater cost to the world economy.
The bill will introduce a number of tax cuts for the US’s wealthiest. Earners over $1 million are expected to see an after-tax income boost of over 3%, while increasing state and local tax deductions from $10,000 to $40,000 for those earning less than $500,000 annually. Estate tax exemptions were also increased to $15 million.
The bill aims to offset these significant tax reductions and increased government spending with cuts to critical benefits programs like the Supplemental Nutrition Assistance Program and Medicaid, as well as income from tariffs. According to Reuters, some 10 countries are expecting letters from the Trump administration announcing 20%-30% hikes in tariffs on July 4.
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.”
This increase in government spending, along with tariffs on global trade, represents a “permanent reordering of the trade and spending model,” he stated.
Trump is set to sign the bill into law on July 4, the US’s Independence Day.
Crypto week incoming in Washington
While the world economy and Medicaid recipients are bracing for the impact of the Big Beautiful Bill, pro-crypto lawmakers in Washington are already busy.
On July 3, Lummis introduced a solo bill to address her aforementioned qualms with the tax code for miners. The bill also contains a de minimis exemption for digital asset transactions and capital gains of $300 or less, with an annual cap of $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 senators want to pass three separate bills in a week, namely 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 pushed lawmakers to get the STABLE Act on his desk “ASAP,” particularly before Congress goes on break in August.
The crypto industry appears to be getting its way in Washington, while the broader economic story of the Trump administration is more controversial.
Magazine: Bitcoin vs. stablecoins showdown looms as GENIUS Act nears
