Trump’s Bill Leaves Crypto Empty-Handed, But Bitcoin Soars Anyway!
Trump’s Massive Spending Bill Leaves Crypto Community Disappointed, But bitcoin May Still Benefit
Crypto Advocates Left Empty-Handed
Despite extensive lobbying efforts from the cryptocurrency sector, President Trump’s monumental $3.3 trillion spending and tax package, dubbed the “One Big Beautiful Bill,” has emerged devoid of any provisions related to digital currencies. This outcome follows months of anticipation and last-minute amendments that had stirred excitement within the crypto community.
A Missed Opportunity for Crypto Legislation
Senator Cynthia Lummis, a prominent advocate for cryptocurrency in Congress, had proposed a series of amendments that many believed could significantly alter the landscape for digital asset transactions in the U.S. These proposed changes were designed to alleviate burdens on crypto users and businesses alike, including:
- Simplifying Small Transactions: The amendments aimed to exempt transactions under $300-$600 from capital gains reporting, allowing individuals to make small purchases with bitcoin without the hassle of IRS tracking.
- Tax Relief for Miners: The proposed legislation would have ensured that miners and stakers only incur taxes upon selling their crypto assets, rather than when they earn them.
- Easing Corporate Reporting: Companies like MicroStrategy would have benefited from more flexible reporting requirements for their bitcoin holdings.
However, when the final vote was cast, all digital asset provisions were removed to secure broader bipartisan support, leaving the crypto community disheartened.
Unexpected Silver Lining for bitcoin
While the legislation lacks any direct benefits for cryptocurrencies, analysts are suggesting that the massive spending could inadvertently set the stage for bitcoin’s resurgence. The bill adds an astonishing $3.3 trillion to the national debt and includes significant tax cuts, raising concerns about inflation. With the U.S. Dollar Index facing its steepest decline since 1973, experts warn that this could lead to further devaluation of the dollar.
One crypto analyst noted, “This bill could accelerate the decline of our fiat currency. Sometimes, the best outcomes for bitcoin arise when it is overlooked by lawmakers.”
Lummis Remains Committed to Crypto Reform
Senator Lummis is not backing down. Shortly after the bill’s passage, she introduced a separate cryptocurrency tax reform proposal that mirrors her earlier amendments. “We must not let outdated tax regulations hinder American innovation,” she stated, vowing to push this new legislation forward.
Her new bill addresses long-standing frustrations within the crypto community, such as the impracticality of tracking minor transactions and the complex tax implications surrounding decentralized finance (DeFi) activities.
Looking Ahead: The Future of Crypto Legislation
The recent legislative outcome serves as a wake-up call for the crypto industry. Despite having gained significant political traction, the community was unable to secure any provisions in this major legislative effort.
However, this setback may galvanize advocates as they rally around Lummis’s new bill. The economic conditions created by the “One Big Beautiful Bill” could provide an ideal environment for bitcoin to thrive. The pressing question now is whether the crypto community can transform this legislative disappointment into a market advantage, and if Lummis can generate sufficient momentum for her renewed efforts. Meanwhile, all eyes are on the upcoming “Crypto Week” for further insights into the Trump administration’s stance on cryptocurrency.
