There Are No Victories for Cryptocurrency in Trump's 'Big Beautiful Bill'

Although Trump's budget does not address any issues regarding crypto, enhancing liquidity could still be a benefit for cryptoassets. The "Big Beautiful Bill" can still boost the cryptoasset market, despite lacking any provisions related to cryptoassets. On Thursday, June 3rd, the U.S. House of Representatives passed House Resolution 1, a landmark budget bill supported by President Donald Trump. A massive budget, expanding tax cuts and reducing welfare, was passed by a narrow vote of 218–214, with only two Republicans opposing: Thomas Massie, a fiscally conservative from Kentucky, and Brian Fitzpatrick, a Republican who is anti-Trump. Massie opposed it on the grounds that the bill would significantly increase the U.S. deficit. Despite the sweeping changes in taxes, immigration enforcement, and benefits such as Medicaid, this massive budget contains no provisions related to cryptoassets. This is despite the efforts of cryptoassets-supporting Senator Cynthia Lummis, who has proposed several amendments related to cryptoassets. You might also like: The Senate passes Trump's massive budget bill, not mentioning cryptoassets or Bitcoin. These amendments include changes to taxes on mining and staking income, a major concern for the industry. However, these amendments ultimately were not passed, leaving the decision on these issues to future bills. Notably, on the same day the budget bill was passed, Lummis introduced a new bill specifically regarding cryptoasset taxes. Bitcoin rises after Trump's budget is approved While the cryptocurrency industry may be disappointed by the lack of direct legislative benefits, the market has reacted positively. Bitcoin (BTC) is trading near $110,000, up 0.24% in the past 24 hours, while the overall cryptoassets market capitalization has increased by 0.3%. The positive reaction may stem from the expected stimulating effects of the budget. Economists predict that the new financial package could add between 3 trillion and 4 trillion dollars to the national debt of the United States over the next decade, due to a combination of lower taxes and increased spending. The sudden spike in this deficit spending is expected to inject liquidity into the financial system, a development that often boosts both stocks and cryptoassets. Although the bill itself does not mention digital assets, its potential to drive liquidity has already begun to affect market sentiment.