'Taxing remittances from non-U.S. citizens at 5%, is this a measure to combat capital outflows? Or does it inadvertently give cryptocurrency a chance to 'legally break free'?

'If traditional remittances are taxed, while self-custody crypto wallets are not under tax regulation, could this make crypto payments the 'only way out'?


At the policy level, every 'strong regulation' is often accompanied by a wave of 'new migrations' — this time it may be cryptocurrency's turn.



[What exactly does Trump's 'grand and beautiful' tax plan entail?]


Recently, the new tax proposal put forward by Trump has been approved by the House Budget Committee, marking the first step in the formal legislative process. This tax bill, which Trump himself calls 'grand and beautiful', has one of its core contents as:



A 5% consumption tax on funds remitted overseas by non-U.S. citizens.



This sounds like a 'regulation of immigrant capital', but for the crypto space, its subtext is profound.



[Regulatory loopholes, or gaps for crypto?]


Traditional cross-border remittances, such as those made through banks, wire transfers, or formal payment platforms, will fall under the regulatory scope of this tax plan. However, currently, the bill does not involve self-custody cryptocurrency transactions, meaning that:


  • Using a crypto wallet for direct international transfers (P2P) theoretically does not fall under this new tax burden;


  • The decentralized nature of cryptocurrencies means users can bypass high-tax traditional financial channels to achieve remittance purposes at a lower cost;


  • If the taxes are implemented, the cost of transferring through centralized platforms will rise, while self-custody wallets or privacy coins like Monero and Zcash may welcome a 'substitution dividend'.


Coin Center policy director Peter Van Valkenburgh even directly stated: 'This bill will encourage users to shift towards self-custody crypto tools, which remain legal and unrestricted under current regulations.'


In other words, this is a policy event that forces a migration path through regulation, transitioning from traditional remittances to decentralized crypto transfers in an 'unplanned advance'.



[The other side of the bill: fiscal deficit, economic rating, market turbulence]


Aside from the tax provisions, this bill has also raised macro-level concerns:


  • An independent institution reports that this bill could increase U.S. fiscal debt by $3 trillion to $5 trillion;


  • Moody's downgraded the U.S. credit rating last Friday, reflecting market concerns about future fiscal sustainability;


  • Although the U.S. Treasury Secretary insists that this plan will drive growth, the market has already begun to react in advance — the demand for safe-haven assets has risen, and BTC's strong breakthrough above $107,000 in May is a clear signal.


More subtly: since February this year, every policy statement from Trump has almost triggered significant volatility in the crypto market.


From tariff policies suppressing BTC below $76,000 to the easing of China-U.S. trade relations boosting BTC back to historic highs, Trump's 'statements + policies' have already become another driving force in the crypto market.



[What's the next step? Be wary of regulation and seize the trend]


If this bill progresses smoothly and is ultimately implemented, it could trigger the following chain reactions:


  1. The demand for self-custody wallets is surging: especially in areas where immigrant communities gather, the combination of self-custody + on-chain transfers will become a popular alternative path;


  2. Privacy-centric crypto projects will benefit: including Zcash, Monero, Railgun, etc., are more likely to attract funding;


  3. Increased compliance pressure on centralized exchanges: KYC/AML processes will become more complex, while P2P or DEX trading volumes may rise.


This actually reaffirms one point: the tighter the policy, the more active the crypto.

But the problem is, ordinary people find it hard to capture these subtle changes in real-time.


At this time, a tool that can track policy dynamics, monitor on-chain capital flows, and analyze changes in market sentiment is particularly important.


Just like Mlion.ai, through deep analysis of news + AI on-chain analysis + monitoring changes in self-custody wallet activity, you can understand immediately:


  • Which addresses are laying out plans in advance;


  • Which sectors are rising against the trend despite policy headwinds;


  • Which cryptocurrencies are becoming a safe haven 'under the regulatory red line'.



Especially in this period of **'volatile policies + market sensitivity'**, using Mlion.ai to understand the trends behind the data is much more stable than waiting for news to come out and then chasing prices.



Conclusion:


On the surface, it appears to be a tax bill, but in reality, it may be a new fuse for cryptocurrency payments and cross-border transfer scenarios.

You can choose to watch from the sidelines or choose to lay out your plans in advance.


With Mlion.ai, see the opportunities behind policies and stay ahead of the trends.



The above content is for informational sharing only and does not constitute any investment advice!