Author: Bright, Foresight News
On July 1, the U.S. Senate garnered enough votes (51 in favor, 49 against) in a procedural vote to advance the Trump administration's 'One Big Beautiful Bill' (One Big Beautiful Bill Act), which previously caused a fallout between Trump and Musk.
Musk directly tweeted, 'If this crazy spending bill (the 'One Big Beautiful Bill') passes, a new political party will be formed in the U.S. the next day. Our country needs an alternative to the single-party system of the Democratic and Republican parties so that the people truly have a voice.' Following this, Musk consecutively retweeted posts criticizing America's crippling debt and commented on the fact that debt has risen during both Democratic and Republican administrations, stating, 'They are just pretending to be two parties, but in reality, they are just one party.'
In this regard, a previous online poll showed that over 80% of voters believe the United States needs a new political party.
At 12:00 AM Beijing time on July 1, the U.S. Senate secured enough votes (51 in favor, 49 against) in a procedural vote to advance Trump's tax reform bill, increasing the likelihood of the bill passing in the coming days. The bill is called the 'One Big Beautiful Bill' (One Big Beautiful Bill Act) and contains multiple provisions spanning over 1,000 pages, primarily focusing on tax cuts and spending reductions.
The bill will extend the corporate and individual tax cuts passed by Trump during his first term in 2017, provide new tax relief for tips, auto loans, and raise the eligibility threshold for social welfare for impoverished groups, significantly cut clean energy subsidies in the Biden administration's Inflation Reduction Act (IRA), while increasing defense spending and providing more funding to combat illegal immigration.
'Can the 'One Big Beautiful Bill' make cryptocurrency 'One Big Beautiful'?
Beyond the dispute over the debt ceiling, U.S. Republican Senator Cynthia Lummis from Wyoming is trying to quietly include an important cryptocurrency tax measure in the massive budget bill of the Trump agenda, aimed at reducing the tax burden arising from basic cryptocurrency activities. Lummis proposed on Monday to add relevant provisions to Congress's 'One Big Beautiful Bill' (Big Beautiful Bill), which includes a tax exemption for small cryptocurrency transactions (under $300).
Industry insiders believe this will clarify the current practice of taxing the core activities of cryptocurrency—staking and digital asset mining—at both ends of the activity.
The proposal also suggests setting the annual total limit for small transactions at $5,000, significantly reducing the burden of calculating capital gains tax for those who only engage in a small number of digital asset transactions. Currently, the amendment pushed by Cynthia Lummis has not yet been voted on and involves tax issues related to cryptocurrency lending, wash trading, and charitable donations.
Industry insiders believe that this amendment will alleviate many potential users' concerns about trying cryptocurrency. In fact, just yesterday, the U.S. Supreme Court rejected Coinbase user James Harper's appeal against the IRS, refusing to hear his request for 'protection of user cryptocurrency transaction data from forced disclosure.'
However, once this amendment passes, investors will be exempt from some of the cumbersome procedures for reporting small transactions, and transaction data that does not involve large token purchases or sales on a daily basis will not need to be disclosed.
Additionally, U.S. Democratic Senator Jeff Merkley from Oregon has proposed an amendment to the 'One Big Beautiful Bill' that prohibits elected officials from promoting or profiting from cryptocurrency tokens in which they have a financial interest. In response, Cynthia Lummis staunchly opposed this amendment, stating that it would severely harm innovation and competitiveness in the U.S. and undermine the government's ability to effectively understand and regulate digital assets. It is evident that cryptocurrency has now become a fundamental base of economic support for the Republican Party.
Overall, the 'One Big Beautiful Bill' is seen by the market as the first step in the Trump administration's 'quantitative easing,' with Trump again urging Powell regarding interest rate cuts. In response, Goldman Sachs has brought forward its Federal Reserve rate cut expectations from December of this year to September. Perhaps, a major easing is on the way?