Trump's "Big, Beautiful Bill" Boosts Crypto Economy with 1.7 Trillion Tax Cuts

US Presidential advisor Bo Hines recently expressed his view that the crypto economy, particularly Bitcoin, is poised to gain significantly from the recently enacted legislation known as the "Big, Beautiful Bill." This bill, a signature piece of legislation from President Trump's second term, was passed by the House with a vote of 218 to 214 and subsequently signed into law.

The "Big, Beautiful Bill" is a comprehensive piece of legislation that includes a range of provisions. Notably, it slashes taxes and makes significant cuts to Medicaid. The bill has been described as a "grotesque giveaway to the ultra-wealthy," with $1.7 trillion in tax cuts for those making over $500,000. However, the bill also includes provisions that could benefit the crypto economy. One of the key aspects of the bill is the removal of the federal tax subsidy for new, used, and leased electric vehicles (EVs), despite a $5 trillion increase in the debt ceiling. This move could potentially redirect investment towards other sectors, including cryptocurrencies.

The passage of this bill has sparked debate and speculation about its potential impact on various sectors of the economy. While some critics argue that the bill disproportionately benefits the wealthy, others see it as an opportunity for growth in emerging industries. The crypto economy, in particular, could see a boost as investors look for alternative investment opportunities in the wake of changes to tax policies and subsidies.

The removal of the federal tax subsidy for EVs is a significant change that could have far-reaching effects. By eliminating this subsidy, the bill could make EVs less attractive to consumers, potentially leading to a shift in investment towards other areas. This shift could benefit the crypto economy, as investors seek out new and potentially lucrative opportunities. The bill's impact on the crypto economy is still uncertain, but the potential for growth is clear.

The passage of the "Big, Beautiful Bill" marks a significant moment in US economic policy. The bill's provisions, including tax cuts and changes to subsidies, have the potential to reshape the economic landscape. While the bill has been met with criticism, it also presents opportunities for growth in emerging industries, including the crypto economy. As the bill's provisions take effect, it will be important to monitor its impact on various sectors and assess the potential for long-term growth.

Hines further states that the “Big, Beautiful Bill” will make the country a global leader in crypto innovation and adoption. He gave the President high praise and noted that it was a significant milestone for the country. The main focus of the major legislation is on three of Trump’s key policy positions: tax cuts for companies, reduced regulations, and enhanced border control. While these three issues received major mention in the bill, some crypto-friendly Acts managed to pass through as part of the package, with strong bipartisan support. This level of cross-aisle support demonstrates just how popular cryptocurrency is among the American public.

They include the Genius Act and the Clarity Act, both of which address the regulatory climate of the USA. The Genius Act sets clear rules regarding the circulation of stablecoins in the country while being open to innovative ideas coming from the sector, Hines stated. The Clarity Act, on the other hand, aims to address the major legal conundrum faced by cryptocurrencies, not just in the USA but worldwide. According to the White House advisor, this legislation draws a clear line between a digital commodity and a digital security, paving the way for crypto innovation without legal complications in the USA.

Pro-crypto legislation and crypto-friendly policies were a major part of Donald Trump’s 2024 presidential campaign. It was in complete contrast to his opponent Kamala Harris, who failed to capitalize on the pro-crypto entirely. The Clarity Act and the Genius Act are likely to significantly support the cause of digital currencies in the country if implemented in full spirit. Trump is likely to claim that a significant portion of his promise to implement crypto reforms has been fulfilled. However, hawkish federal agencies like the Securities and Exchange Commission (SEC) and the FBI will need to be on board for this crypto regulation to succeed. The latter has historically treated digital currencies like a tool used by criminals, so that a complete rewiring may be on the cards in the coming days, especially under Trump’s FBI chairman, Kash Patel.