Trump's 'Big and Beautiful Act' Passed in the House, But Did Not Include Any Cryptocurrency-Related Provisions
On July 3rd local time, the U.S. House of Representatives narrowly passed President Trump's 'Big and Beautiful' budget bill with a vote of 218 to 214.
Only two Republican members voted against the resolution (Thomas Massie from Kentucky and anti-Trump Brian Fitzpatrick), citing concerns that the bill would significantly increase the U.S. government's budget deficit.
It is noteworthy that despite significant reforms in areas such as taxation, immigration enforcement, and Medicaid, the budget bill did not address amendments related to mining and staking taxation that are of concern to the cryptocurrency industry.
Meanwhile, on the same day the bill passed the House, pro-cryptocurrency Senator Cynthia Lummis introduced several cryptocurrency-friendly amendments (involving tax reforms for mining and staking income, the progress of which and its potential impact on the crypto industry will be closely monitored by the industry).
Although the 'Big and Beautiful' Act lacks direct benefits, the cryptocurrency market reacted relatively positively. BTC prices have been attempting to break through $110,000 in the past two days, and the overall market value of cryptocurrencies also saw a slight increase, which may stem from the expected stimulus effect brought by the bill.
Some economists predict that the tax cuts and increased spending measures in the bill will lead to a surge of $3 to $4 trillion in U.S. debt over the next decade, injecting more liquidity into the financial system, and this expected fiscal expansion policy typically has a positive impact on asset classes like the stock market and cryptocurrencies.
In addition, the increase in liquidity may lower borrowing costs, making it easier for businesses and individuals to obtain funds, which could stimulate economic growth and investment activities, including investments in the cryptocurrency sector.
Therefore, despite the fact that the passed bill itself did not include provisions related to digital assets, the market seems to place greater importance on the potential macro liquidity changes it may bring.
Because the potential impact of macroeconomic policy can sometimes influence overall market price trends more swiftly than legislative progress within the industry.