• Senate passes Trump’s $3.3 trillion Big Beautiful Bill. 

  • Bill lacks crypto provisions, but debt could boost Bitcoin. 

  • Inflation risks may drive demand for digital assets. 

  • House vote looms; crypto amendments still possible. 

  • Stablecoin regulation advances separately via GENIUS Act. 

The U.S. Senate has passed President Donald Trump’s $3.3 trillion fiscal package, known as the Big Beautiful Bill, in a narrow 51-50 vote, with Vice President JD Vance casting the tie-breaking vote. The legislation, formally titled the One Big Beautiful Bill Act, now heads to the House of Representatives for final approval. While the bill lacks explicit cryptocurrency provisions, its economic implications could significantly affect digital asset markets.

Economic Shifts and Crypto Market Impact

The Big Beautiful Bill includes sweeping tax reforms and increased spending on border security and defense. It extends Trump’s 2017 tax cuts, raises the child tax credit to $2,200, and introduces tax breaks for tip income and overtime pay. However, it also slashes funding for social programs like Medicaid and SNAP, raising concerns about a projected $3.3 trillion addition to the national debt over the next decade.

Increased debt could weaken the U.S. dollar, fueling inflation. Bitcoin, often seen as a hedge against currency devaluation, may see heightened demand. A weaker dollar could enhance Bitcoin’s appeal as a “digital gold” safe haven, potentially driving its price higher.

The bill’s passage follows a contentious Senate session, with no Democrats supporting it and three Republicans—Rand Paul, Thom Tillis, and Susan Collins—voting against it. The absence of crypto-specific amendments disappointed some industry advocates, but broader economic effects may still reshape crypto markets.

Missed Crypto Provisions and Future Prospects

Senator Cynthia Lummis proposed amendments to address cryptocurrency taxation, including ending double taxation for miners and stakers and exempting small crypto transactions from capital gains taxes. These measures aimed to clarify tax rules and encourage retail adoption but were not included in the final Senate version.

“We need fair tax policies to make America a leader in Bitcoin and blockchain,” Lummis stated, emphasizing the need for regulatory clarity. Industry leaders expressed frustration, noting the missed opportunity to support crypto miners and retail users. Efforts continue to include these provisions in the House version.

The House, where Republicans hold a slim majority, is expected to vote on the bill by July 4. If crypto-friendly provisions are added, they could spark a rally in Bitcoin, Ethereum, and select altcoins. However, the bill’s inflationary impact and potential Federal Reserve response, such as interest rate hikes, could introduce volatility to risk assets like cryptocurrencies.

The bill’s passage aligns with growing crypto influence in Washington. The industry spent over $119 million supporting congressional candidates in 2024, highlighting its political clout. 

Stablecoin regulation, addressed separately in the Senate’s GENIUS Act, passed with bipartisan support on June 17. That legislation establishes a framework for stablecoins, potentially boosting their adoption

The Big Beautiful Bill’s economic ripple effects could drive speculative interest in altcoins, as increased household income from tax cuts may boost retail trading. However, without spending cuts, the bill’s deficit impact could pressure Treasury yields, affecting crypto valuations.

As the bill awaits House approval, crypto markets remain vigilant. The interplay of inflation, Federal Reserve policy, and potential tax reforms will shape the sector’s trajectory in 2025.

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