Author: Shenchao TechFlow
$3.3 trillion in tax cuts, $1.13 trillion in spending cuts, 1,118 pages of bill text... A super bill known as the 'Big and Beautiful Bill' (the One Big Beautiful Bill Act of 2025, abbreviated as OBBBA) is reshaping the economic landscape of the United States while also triggering new disputes between the two parties, even causing Musk to be 'furious.'
On July 1, Musk posted on social media platform X, stating that if the current 'crazy spending bill' (the Big and Beautiful Bill) is passed, he will establish the 'America Party' the next day to protest this bill.
As a hallmark policy of Trump's second term, this bill can be considered 'all-encompassing'; it carries the Republican Party's ambitions and ignites intense social controversy.
This article will delve into the core content of the 'Big and Beautiful Bill,' the discussions it has sparked, and its potential impact on the cryptocurrency industry, exploring the full picture of this legislative storm.
The Big Bill
The 'Big and Beautiful Bill' is a massive tax and spending bill promoted by U.S. President Donald Trump in 2025, covering six major areas: tax reform, healthcare reform, immigration policy, defense budget, energy policy, and education and welfare reform.
As a hallmark legislation of Trump's second term, it attempts to stimulate the economy through massive tax cuts, increased spending, and policy adjustments while addressing fiscal, immigration, and national security issues.
The bill text spans 1,118 pages, containing 237,327 words, and involves multiple complex provisions. The Senate's review of the bill took 16 hours to read the full text verbatim. According to a summary reported by the BBC on June 28, the core content of the 'Big and Beautiful Bill' includes the following nine aspects:
According to estimates by the Tax Foundation, the 'Big and Beautiful Bill' is expected to reduce federal tax revenue by about $3.3 trillion (dynamic estimate) between 2025 and 2034 through tax cuts, while increasing defense spending by approximately $150 billion, primarily for missile defense, ammunition, and shipbuilding; at the same time, the bill will also significantly cut spending by about $1.13 trillion, including an $800 billion reduction in Medicaid and saving $330 billion through student loan program reforms.
Economically, the bill will increase long-term GDP growth by 0.6%, but capital stock and pre-tax wages will decrease by 0.2% and 0.1%, respectively, while approximately 794,000 full-time jobs will be added. Ultimately, the bill is expected to increase the deficit by $3.3 trillion between 2025 and 2034, with potential fiscal sustainability risks arising from high interest rates and the crowding out of private investment.
In addition, the Congressional Budget Office (CBO) estimates that if the bill is implemented in its House version, it will increase U.S. debt by $2.4 trillion, while the purchasing power of the bottom 10% of families will decrease by 4% between 2026 and 2034, whereas the purchasing power of the top 10% of families will increase by nearly 3%, sparking controversy over 'robbing the poor to give to the rich.'
But the disputes go far beyond that.
The Great Dispute
The 'Big and Beautiful Bill' was first announced by the U.S. House of Representatives' fundraising committee on May 12, 2025. It was narrowly passed in the House on May 22 by a vote of 215 to 214 and passed a procedural vote in the Senate on June 28 by a vote of 51 to 49, entering the formal review stage, with expectations for Trump to sign it into law before the July 4 Independence Day holiday. Due to its massive scale, complex content, and far-reaching impact, it has become the focus of American politics and social discourse, triggering widespread controversy and intense discussion.
The promoters of the bill see it as one of the core agendas of the Trump administration. Supporters believe that through tax cuts and increased defense spending, the bill will stimulate economic growth and enhance national security, especially since the tough immigration and border policies have received support from some voters.
However, the divisions within the Republican Party are evident, with some hardliners demanding further cuts to social welfare spending, while moderates hope to retain programs like Medicaid, concerned that the bill may lead to an increase in the deficit and impact low-income groups.
In the two votes on May 22 and June 28, the bill passed by a narrow margin, reflecting the division of opinions within the party.
The intra-party division is not the only issue; more widely known is Elon Musk, head of the former government efficiency department (DOGE) and founder of Tesla, who has strongly opposed the bill. Based on this bill, Musk's public feud with President Trump is seen as a symbolic event marking their open break. Since June 3, he has referred to it as 'massive, ridiculous, and extremely disgusting,' and after the most recent procedural vote on June 28, he still firmly believes this is a 'political suicide' for the Republicans.
Musk criticized the bill for significantly increasing the budget deficit, estimating that the deficit for the next fiscal year would increase by $600 billion, potentially totaling $2.5 trillion over the next decade, which runs counter to the Trump administration's earlier claims of cutting government spending.
Moreover, the provisions in the bill that gradually eliminate electric vehicle tax credits may adversely affect Tesla, escalating Musk's dissatisfaction. He even proposed transferring the FAA's air traffic control system to his 'Starlink' operations, but this proposal was not adopted, leading to further controversy. Musk even threatened to fund election challenges against Republicans opposing the bill, highlighting his differences with Trump.
The Democratic Party unanimously opposes this bill, arguing that it reduces healthcare and welfare support for low-income groups to provide tax cuts for the wealthy, which is a typical case of 'robbing the poor to give to the rich.' Democratic leader Schumer demanded a verbatim reading of the bill in the Senate to delay the vote, demonstrating a strong resistance. Nobel laureate Paul Krugman also criticized the bill as an unprecedented act of robbing the poor to give to the rich, pointing out that its combination with Trump's tariff policy would further harm the interests of the bottom 80% of households.
The public and media response has been polarized.
Supporters believe the bill fulfills Trump's campaign promises, such as tax cuts and strict immigration policies, while opponents worry that it may exacerbate social inequality and debt burdens. Some users also noted concerns about digital identity and big data surveillance issues that may arise after the bill's passage, raising privacy protection concerns.
From an international perspective, foreign investment holds a cautiously optimistic view of the bill, believing that its stimulus measures may offset the negative impact of the tariff policy on GDP by about 1% to some extent. However, Clause 899 of the bill 'executing remedial measures against unfair foreign taxation' involves retaliatory taxes, raising concerns about foreign investment motives and the stability of the dollar.
Overall, the passage of the 'Big and Beautiful Bill' has not only triggered widespread political and social controversy within the U.S. but also had a profound impact on the international economic environment and investment confidence, although the White House issued a response to the current majority of controversies with an article on rumors and facts, the future implementation effects remain to be observed.
What does crypto have to do with it?
Literally speaking, the currently well-known provisions of the Big and Beautiful Bill may weaken the power of federal courts, severely impact the healthcare system, increase debt burdens, intensify immigration enforcement, restrict foreign investment, exacerbate air pollution, and elevate defense budgets, although the effects are broad, they are indeed not related to cryptocurrency.
The reality may not be so. The passage of the 'Big and Beautiful' Bill (OBBBA) is likely to have a profound impact on the cryptocurrency and financial industries.
The 2024 Republican Party platform in the United States has explicitly included provisions supporting cryptocurrencies, opposing excessive regulation, and advocating for citizens’ rights to manage digital assets autonomously, reflecting a positive government attitude toward the cryptocurrency industry. At the same time, the government has established an executive order for a 'strategic Bitcoin reserve,' incorporating Bitcoin into national strategic reserve assets, marking a fundamental enhancement of Bitcoin's status.
The bill is expected to lead to an additional $5 trillion deficit for the United States government, and such a scale of fiscal expansion may undermine market trust in the dollar and U.S. Treasury bonds. The reduction of foreign investment in U.S. bonds has become a structured trend, and after fund outflows, money may flow into Asian stock markets, gold, and Bitcoin (BTC), further enhancing Bitcoin's status as a global store of value asset, especially in the context of Bitcoin being included in the U.S. strategic reserve assets.
At the same time, the tax cut policies and fiscal stimulus measures in the bill create a more favorable macro environment for cryptocurrency assets. The preferential capital gains tax policy encourages investors to hold digital assets for the long term, which not only injects long-term capital into the cryptocurrency market but also further consolidates the United States' position as a global cryptocurrency hub.
On June 11, 2025, Cahill released an analysis report on the upcoming cryptocurrency asset legislative amendment. The report states: this 'is expected to be proposed by Wyoming Republican Senator Cynthia Lummis,' 'an unreleased digital asset legislative proposal,' 'planned to be included as an amendment to the Big and Beautiful Bill.'
This bill involves specific regulations for sub-sectors such as mining, staking, airdrops, and cross-border transactions, as well as the formulation of inclusive policies regarding a minimum limit of $600 and taxes on foreign investors, reflecting the regulatory body's prudent attitude in balancing industry development and tax management.
Market dynamics show that since May, exchanges like Coinbase have seen outflows of over 100,000 BTC, and the continuous accumulation by whales indicates that the market's long-term bullish sentiment towards Bitcoin remains strong.
Whether it is the trade-off between tax cuts and deficits, the hard turn in immigration policy, or the potential impacts on cryptocurrencies and financial markets, these factors will continue to shape the U.S. economic and social landscape in the coming years.
The great is evident, the wait for the U.S. is yet to be determined.
