Original Article Title: "Big and Beautiful" Bill Sparks Controversy, Tax Break for Crypto Industry?

Original Article Author: Bright, Foresight News

On July 1, the U.S. Senate secured enough votes in a procedural vote (51 in favor, 49 against) to advance the Trump administration's "Big and Beautiful" bill, a bill that had previously caused a stir between Musk and Trump.

Musk tweeted directly, saying, "If this insane spending bill ('Big and Beautiful' bill) goes through, a new U.S. political party will be created the next day. Our country needs an alternative to the Democrat and Republican mono-party so the people truly have a voice." Musk then proceeded to retweet posts criticizing the heavily indebted U.S. and commented on the fact that debt has risen during both Democratic and Republican administrations, stating, "They pretend to be two different parties, but they are really just one party."

Prior to this, a previous online poll showed that over 80% of respondents believed that the U.S. needs a new political party.

On the early morning of July 1 Beijing time, the U.S. Senate secured enough votes in a procedural vote (51 in favor, 49 against) to advance the Trump tax reform bill, increasing the likelihood of the bill passing in the coming days. The bill, known as the "Big and Beautiful" Bill (One Big Beautiful Bill Act), or OBBB bill, contains multiple provisions spanning over 1000 pages, focusing primarily on tax cuts and expenditure reductions.

The bill will extend the tax cuts for businesses and individuals that Trump passed during his first presidential term in 2017, provide new tax breaks for tips, car loans, and more, raise the eligibility threshold for social welfare for the impoverished, significantly cut clean energy subsidies in the Biden administration's Inflation Reduction Act (IRA), increase defense spending, and allocate more funds to combat illegal immigration.

Can the "Big and Beautiful" Bill Make Crypto "Big and Beautiful"?

Beyond the debt ceiling dispute, Republican Senator from Wyoming, Cynthia Lummis, is seeking to quietly introduce a significant cryptocurrency tax provision into the Trump agenda's massive budget bill, aimed at reducing the tax burden arising from basic cryptocurrency activities. Lummis proposed on Monday to include relevant provisions in Congress's "Big and Beautiful" bill, including a provision that exempts small cryptocurrency transactions (under $300) from taxes.

Industry insiders believe that this will streamline the current practice of taxing both ends of cryptocurrency's core activities—staking and digital asset mining. The proposal also suggests setting the annual small-scale transaction limit at $5,000, significantly reducing the burden of calculating capital gains tax for those who engage in only a small amount of digital asset trading. Currently, Cynthia Lummis's proposed amendment, which also addresses cryptocurrency lending, wash sales, charitable donations, and other tax issues, has not yet been voted on.

Industry experts believe that this amendment will alleviate many potential users' concerns about exploring cryptocurrency. In fact, just yesterday, the U.S. Supreme Court rejected Coinbase user James Harper's appeal against the Internal Revenue Service (IRS), refusing to hear his plea to "protect user cryptocurrency transaction data from being disclosed involuntarily."

However, once this amendment is passed, investors' small-scale transactions will be exempt from the cumbersome tax reporting process, and transaction data that do not involve large-scale token purchases or sales on a daily basis will not need to be disclosed.

Additionally, U.S. Democratic Senator Jeff Merkley of Oregon proposed an amendment to the "Too Big To Fail" bill, prohibiting elected officials from promoting or profiting from cryptocurrency tokens in which they have a financial interest. In response, Cynthia Lummis vehemently opposed this amendment, stating that it would severely damage America's innovation and competitiveness, as well as hinder the government's ability to effectively understand and regulate digital assets. It is evident that cryptocurrency has now become a cornerstone of the Republican economic base.

Overall, the "Too Big To Fail" bill is seen by the market as the first step in the Trump administration's "opening the floodgates" strategy, with Trump once again pressuring Powell regarding interest rate cuts. In response, Goldman Sachs has brought forward its expectations for a Federal Reserve interest rate cut from December to September this year. Perhaps the floodgates are about to open wide?

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