On Sunday, the U.S. Congress moved forward with Trump’s new tax proposal, which is already sparking heated debate – not only among politicians but also in the crypto world. Dubbed the “big and beautiful” plan by President Donald Trump, the bill passed the House Budget Committee and is generating mixed reactions. Could it open the door to broader crypto adoption, or is it a cause for concern?
🔹 What Exactly Is Trump Proposing?
The key point? A 5% tax on money transfers from U.S. residents to their home countries abroad. According to the White House, the goal is to reduce government spending – but the move may also trigger unexpected consequences in the cryptocurrency space.
🔹 Migrants and Crypto: Dodging the Tax?
Mexican Ambassador to the U.S., Esteban Montezuma Barragán, has criticized the bill, calling it a form of double taxation. He warns that it could push migrants to turn to informal or unregulated money transfer channels – and this is where crypto might come in.
“People will start avoiding formal systems and look for alternative ways to send money. That’s a problem for oversight,” he said.
🔹 Coin Center: Law Might Drive Interest in Private Crypto Tools
Coin Center, a nonprofit focused on crypto policy, also voiced concerns. Its director, Peter Van Valkenburgh, said the tax law brings “complex and troubling consequences” – but it could also accelerate the use of privacy-focused tools.
“People will increasingly turn to self-hosted crypto wallets, which remain fully legal and are outside the scope of this tax proposal,” he emphasized. Centralized exchanges, on the other hand, could face increased compliance burdens.
🔹 Critics Warn of Fiscal Collapse
Not everyone is optimistic. Independent economic analyses warn that Trump’s bill could add an extra $3 to $5 trillion to the U.S. national debt by 2035. Last week, Moody’s even downgraded the U.S. credit rating, citing growing concerns over economic stability.
However, U.S. Treasury Secretary Scott Bessent dismissed the downgrade and remains confident that the bill will lead to more economic growth than debt.
🔹 Bitcoin and Trump: How Policy Moves Crypto Prices
Matthew Pines from the Bitcoin Policy Institute points out that the bill’s long-term impact on Bitcoin might be surprisingly positive. Trump’s economic decisions already influence the market – for instance, his aggressive trade stance earlier this year pushed Bitcoin below $76,000 in April.
But when Trump softened his tone and announced a trade deal with China in May, Bitcoin soared to $107,000 – showing just how tightly crypto is tied to geopolitics.
✳️ What’s Next?
Trump’s tax proposal might unintentionally become a boost for crypto – especially in the area of cross-border money transfers. Whether it becomes a true catalyst for decentralized tech adoption or just another bureaucratic hurdle remains to be seen.
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