Trump’s ‘Big Beautiful Bill’: No Crypto Wins, But Market Eyes Liquidity Boost
Trump’s Budget Passes: Implications for the Crypto Market
Budget Bill Approved Without Crypto Provisions
The recent budget proposal championed by President Trump has not included any specific measures addressing cryptocurrency, yet it may still provide a favorable environment for digital assets. On June 3, the U.S. House of Representatives narrowly approved House Resolution 1, a significant budget bill.
This expansive financial plan, which includes tax reductions and cuts to social benefits, was passed with a slim margin of 218 to 214. Only two Republicans opposed the bill: Thomas Massie from Kentucky, who is known for his fiscal conservatism, and Brian Fitzpatrick, a Republican who has distanced himself from Trump. Massie raised concerns that the legislation would greatly increase the national deficit.
Despite the extensive revisions to tax policies, immigration regulations, and programs like Medicaid, the budget did not incorporate any amendments related to cryptocurrencies. This omission occurred even after Senator Cynthia Lummis, a proponent of crypto, attempted to introduce several amendments aimed at addressing taxation issues for mining and staking income, which are vital for the sector. Unfortunately, these proposals did not gain traction, leaving the future of crypto taxation to be determined in subsequent legislative efforts. On the same day the budget was passed, Lummis also unveiled a new bill focused solely on crypto taxation.
Market Reaction: Bitcoin Sees Gains Post-Budget Approval
Although the crypto community may feel let down by the lack of direct legislative advancements, the market’s response has been optimistic. Bitcoin (BTC) has been trading around the $110,000 mark, reflecting a slight increase of 0.24% in the last 24 hours, while the overall market capitalization for cryptocurrencies has risen by 0.3%.
This positive market sentiment is likely attributed to the anticipated stimulative effects of the newly approved budget. Economists predict that this fiscal package could contribute between $3 trillion and $4 trillion to the national debt over the next ten years, driven by a combination of tax cuts and increased government spending.
The anticipated rise in deficit spending is expected to enhance liquidity within the financial system, a trend that generally benefits both stock markets and cryptocurrency assets. Although the budget itself did not directly address digital currencies, its potential to increase liquidity has already begun to shape market perceptions positively.
