Trump’s ’Big Beautiful Bill Act’ Targets US Tax Reform, Budget Balance, and Fiscal Policy Impacting Crypto Market
Former US President Donald Trump’s signature legislative package, now called the ’One Big Beautiful Bill Act’, combines comprehensive tax reforms, relaxed energy regulations, and measures to boost middle-class income—projected to deliver $13,000 extra annually per family. The act codifies campaign promises, such as tax exemptions for tips and overtime, building a border wall, curbing IRS funding increases, and implementing tariffs on Chinese ship imports. Trump’s advisors claim the act could save $1.4 trillion over ten years without raising taxes or spending, countering CBO forecasts that warn of potential deficit growth. Recent Federal Reserve data reveals robust US economic growth of 4.7% in early Q2, far exceeding CBO expectations, signaling potential for federal budget balance if sustained. US import volumes also fell sharply, highlighting the continued effect of tariff policies on narrowing the trade deficit. The bill narrowly passed the Senate (215:214) and awaits a final vote by July. White House officials warn that failure to pass the act could trigger higher taxes for the middle class, undermine immigration enforcement, and cause fiscal instability. For crypto traders, the intersection of strong economic performance, tax reform, and stable fiscal policy could boost investor confidence and have positive spillovers across both risk asset and cryptocurrency markets.
Bullish
Major US fiscal reforms, robust economic indicators, and policies promoting budget balance typically boost investor confidence, creating a positive environment for risk assets such as cryptocurrencies. The act’s focus on tax relief and fiscal responsibility could encourage more capital flow into both traditional and digital asset markets. While the legislation faces political hurdles and deficit concerns, strong growth data and active policy support reduce immediate macroeconomic risks. Historically, improved economic outlooks in major economies have spurred bullish sentiment for crypto, and the possibility of less aggressive regulation tied to fiscal stability may further benefit digital assets in the short to medium term.