#OneBigBeautifulBill
Donald Trump signed the "One Big Beautiful Bill" into law on July 4, 2025, at a White House ceremony. This bill is a significant legislative victory for Trump's administration, fulfilling key campaign promises. Here are some key points about the bill :
- Tax Cuts: The bill extends Trump's 2017 tax cuts, making previous rates and brackets permanent, and includes around $4.5 trillion in tax reductions. It also introduces new tax deductions on tips, overtime pay, and car loan interest.
- Border Security and Immigration: The bill allocates $350 billion for border security, including funding for the US-Mexico wall and migrant detention facilities. It also provides funds for hiring 10,000 new Immigration and Customs Enforcement (ICE) officers.
- Defense Spending: The bill boosts military spending, including $25 billion for the development of Trump's "Golden Dome" missile defense system.
- Medicaid and SNAP: The bill introduces strict new eligibility rules for Medicaid and the Supplemental Nutrition Assistance Program (SNAP), requiring most recipients to work to receive benefits. It's estimated that nearly 12 million people may lose health insurance due to these changes.
- Economic Impact: The Congressional Budget Office estimates that the bill will increase the national debt by $3.3 trillion over the next decade.
The bill was passed in the House of Representatives with a narrow 218-214 vote, with only two Republicans voting against it. In the Senate, it passed with a 51-50 margin, with Vice President JD Vance casting the tie-breaking vote.
IMPACT ON CRYPTO
The One Big Beautiful Bill Act's impact on the crypto market is multifaceted. While it doesn't directly regulate blockchain or cryptocurrency, its tax cuts and economic stimulus could boost the market. Here are some potential implications:
- Tax Relief: The bill's tax policy provisions are a lifeline for crypto traders, locking in capital gains rates at 15-20% for most and saving traders thousands on assets like Bitcoin or Ethereum. A new $600 de minimis exemption means no taxes on small crypto transactions, like buying NFTs or tokens via web3 mobile apps.
- Increased Liquidity: The bill's $2.9-4.1 trillion deficit increase could inject liquidity into the financial system, lifting both equities and crypto assets. This might lead to a surge in Bitcoin's price, with some analysts predicting a rally to $2.2 million.
- Inflation and Volatility: However, the bill's inflationary policies might also invite volatility and dollar weakness. This could make Bitcoin more attractive as a hedge against inflation, but also increase market fluctuations.
- Regulatory Uncertainty: The bill's lack of direct crypto regulation leaves DeFi and NFT platforms exposed to fraud and uncertainty. Separate laws like the GENIUS Act may bring clarity, but for now, enthusiasts should leverage the bill's tax perks while staying vigilant.
- Market Sentiment: Despite the absence of direct legislative gains, the market responded positively, with Bitcoin trading near $110,000 and overall crypto market capitalization rising 0.3%. The expected stimulative effect of the budget could continue to drive market sentiment .
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