Dubbed by President Donald Trump as the One Big Beautiful Act, the newly approved bill is a landmark US federal statute passed by the 119th Congress. Signed into law on July 5, 2025, the enactment contains key tax and spending policies that form a major part of Trump’s second-term focus.
More so, the highlight of the law includes hundreds of provisions that cut across support for Alaska, children’s welfare package, medical care, military defense, border security, tax credits, and many others. At its core, the bill addresses taxes and government spending.
Since the passage of the Big Beautiful Bill, the cryptocurrency community has been beaming with so much positivity. Crypto commentators are optimistic that the new laws will improve the adoption of digital assets in the country.
Containing hundreds of new laws that cut across all sectors, the relationship between the Big Beautiful Bill and the cryptocurrency space remains unclear. This article aims to explicitly narrate how the new laws impact the sector and how they define the status of cryptocurrency in the United States.
Highlight of the bill and how it relates to cryptocurrency
Relating to the crypto sector, the Big Beautiful Bill covers earnings from mining and staking, stipulating that income from the aforementioned streams will be deferred until the assets are sold. To an extent, the Big Beautiful Bill aims to define tax obligations and reporting processes.
Also, the new law comes with a $600 de minimis rule applied to fractional transactions, while wash sale rules now extend to digital assets. Furthermore, as part of the new development, the bill mandates mark-to-market accounting for trading cryptocurrencies.
Some of the major downsides of the bill includes the absence of a clear definition for digital assets and no exception for stablecoin. A significant portion of the cryptocurrency community expects some crypto tax exemptions, but the bill fails to make provision.
The move to increase the US national debt which is estimated to hit $2.8 trillion by 2034 further brought crypto to the center of discussion. By far, the constraint on the US economy will come with severe impacts like inflation and denying about 10.9 million Americans their health insurance coverage.
Due to that, there is a good possibility for some short-term swings in the crypto market, including the exodus of more investors.
Big Beautiful Bill project Bitcoin is a hedge against inflation – Industry Leaders
However, market experts and commentators have emphasized on one major impact of the bill, mainly on the increased spending and the approval to increase the US debt ceiling. Maybe due to his fallout with the US President, Tesla CEO, Elon Musk strongly condemned the bill as it comes with plans to skyrocket the country’s debt.
Mirroring his opinion is Coinbase CEO, Brian Armstrong who urged the electorates to hold the congress responsible for the high-flying debts. The most interesting part of Armstrong’s call is how it projects Bitcoin to take the center stage as the US continues to accumulate more deficits.
Armstrong discussed how the new bill will instigate inflation in the US economy, which will further position Bitcoin as the reserve currency and hedge against inflation. Additionally, BitMex founder, Arthur Hayes opined that heavy government spending will continue to be on the rise, suggesting that Bitcoin is a perfect shield against the menace.
Also, popular Ripple lawyer, John Deaton stated that the bill is like an advertisement for investors to buy more Bitcoin. He went on to establish that the Big Beautiful Bill should convince Elon Musk and Tesla to buy more Bitcoin.
Conclusion
The Big Beautiful Bill doesn’t come with a clear-cut definition for how digital assets should operate in the US. While it briefly addressed issues relating to staking and mining returns, the legislation falls short of what should be a regulatory framework for cryptocurrencies.
Still, industry leaders predicted that the enactment would redefine how investors interact with the digital assets sector. In their respective submissions, they pointed out how major cryptocurrencies, most especially Bitcoin, will grow in adoption among smart money movers.
With potential inflation underway, there are strong arguments that savvy investors would turn to Bitcoin as a hedge against inflation. This move according to experts’ submissions will usher in new investors and prove crucial in driving innovations in the industry.
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