On the early morning of July 4, 2025, the "One Big Beautiful Bill Act" (OBBBA), after more than 24 hours of a "voting marathon," finally passed the House of Representatives with a slim margin of 218-214 votes, with crypto advocate Vice President JD Vance casting the crucial supportive vote.

Related Reading: "What's in the 'One Big Beautiful Bill Act' that Made Musk Furious"

This bill, seen as the core of Trump's second term "omnibus" agenda, has sparked intense debates within the Republican Party and between both parties, and its comprehensive fiscal policies are expected to influence the macroeconomic trends in the United States and globally.

While OBBBA does not directly involve the crypto market, its provisions on U.S. debt, taxation, expat tax, and regulatory policies may have profound impacts on Bitcoin, crypto companies, and the U.S. stablecoin market in the future.

Raising the Debt Ceiling: Flight-to-Safety Funds or Bitcoin Inflows

OBBBA this time raised the U.S. debt limit to $50 trillion, authorizing the government to support fiscal spending through increased issuance of national debt. However, this large-scale borrowing may undermine the long-term confidence in the U.S. dollar and U.S. debt.

In recent years, foreign holdings of U.S. debt have been declining, with major holders like China and Japan continuously reducing their U.S. debt assets, reflecting a subtle shift in global investors' confidence.

If debt expansion triggers inflation or a U.S. dollar credit crisis, funds may accelerate their exit from the U.S. bond market to seek new safe-haven assets. In this context, Bitcoin, as a potential U.S. strategic reserve and a global store of value, may be favored.

Historically, the price of Bitcoin has often shown strength in times of macroeconomic uncertainty, such as during the 2020 pandemic and the rebound during the 2022 rate hike cycle. The macro uncertainty brought by the OBBBA's increase in the debt ceiling may attract institutional investors and retail investors to increase their Bitcoin holdings, thereby driving up the price of Bitcoin.

"Double Standard" Tax Policy: Mixed Blessings for Crypto Companies

"Protective" Tax Cuts: A Spring for U.S. Crypto Companies

In terms of taxation, OBBBA continues the core provisions of the 2017 "Tax Cuts and Jobs Act," permanently locking the individual income tax rate between 10% and 37%, while raising the standard deduction by an additional $1,000 until 2028, and gradually increasing the child tax credit exemption to $2,500 by 2028.

Although primarily aimed at individuals, these tax policies will also indirectly benefit businesses. For the majority of cryptocurrency companies, which are mostly small to medium-sized enterprises, this means more funds can be invested in innovation. Blockchain development companies can accelerate the research and development of decentralized finance (DeFi) or Web3 projects, while cryptocurrency exchanges can expand their market presence. Startups can also take advantage of this to attract venture capital and expedite product launches.

The OBBBA will also raise the State and Local Tax (SALT) cap from $10,000 to $40,000, with an annual 1% increase from 2025 to 2029, reverting to $10,000 after 2030, and setting up a gradual reduction mechanism of 30% for high-income taxpayers.

This policy will benefit high-tax states such as New York and California, where many cryptocurrency companies (such as Coinbase and mining firm Riot Blockchain) and crypto enthusiasts are concentrated. The tax relief will also free up more capital for business owners and investors, indirectly fueling the research or investment in crypto projects.

“Retaliatory” Taxation: The Rocky Road for International Cryptocurrency Companies Entering the US

However, the OBBBA has set up significant barriers for non-U.S. cryptocurrency companies. Section 899 allows the U.S. Treasury Department to impose additional tax measures on countries that implement discriminatory taxation, especially when it comes to digital services taxes. This move is aimed at responding to international tax policies targeting U.S. companies.

This policy has raised the barriers for foreign crypto companies to enter the U.S. market and significantly increased the operating costs of international crypto companies in the U.S., dampening the investment interest of foreign crypto companies in the U.S. market. This poses a challenge for U.S. small and medium-sized crypto companies that rely on international funding, as it diminishes foreign capital inflows and weakens the demand for compliant U.S. dollar stablecoins.

Investment Depreciation Benefit: Opportunities and Challenges for Mining Firms

The OBBBA, in section 70307, allows businesses to take 100% immediate depreciation on eligible capital assets (such as equipment, software, and certain real estate) and explicitly extends this benefit through the 2030 fiscal year.

This provision will allow crypto mining firms to fully deduct the cost of mining equipment in the year of purchase. This not only reduces the operating costs of mining firms but also enhances miners' profitability. It also enables mining firms to upgrade hardware or scale up mining operations using additional income from founders and shareholders, which can ease some of the operational pressures for mining firms, especially in times of high electricity costs.

However, the OBBBA reduces the clean energy tax credits under the "Inflation Reduction Act," which could put pressure on mining firms. This move will weaken support for green energy investments, while crypto mining firms are heavily reliant on electricity.

The reduction of clean energy tax credits may drive up the cost of renewable energy, increasing the operational burden on mining companies. The rising cost of clean energy may compel mining firms to turn to fossil fuels, sparking environmental controversies and raising compliance costs.

Remittance Tax and GENIUS Act: Accelerating Expansion of the US Dollar Stablecoin Market

Remittance Tax and GENIUS Act: US Dollar Stablecoins Embrace New Growth Opportunities

The OBBBA has introduced a 1% remittance tax, significantly increasing the cost of traditional cross-border remittances, directly impacting immigrants, merchants, and international trade reliant on remittances. Traditional bank transfer fees typically range from 2% to 5%; with an additional 1% tax burden, the cost becomes prohibitively high, prompting users to seek lower-cost alternatives.

Furthermore, Section 70604 specifies that digital asset transfers will be exempt from the remittance tax, highlighting the advantages of stablecoin payments in terms of low cost, low fees, and high efficiency. Especially in regions with high immigrant populations and heavy reliance on remittances such as Latin America, Asia, and Africa, it is foreseeable that the imposition of the remittance tax will accelerate the development and circulation of US dollar stablecoins in these areas.

Simultaneously, the previously proposed GENIUS Act requires stablecoin issuers to back their issuance with US dollars or short-term Treasury bonds at a 1:1 ratio. Analysts suggest that this will unleash a new demand of $1.2-1.6 trillion for US bonds, and with the OBBBA raising the debt ceiling by $5 trillion to meet this demand, it will synergize with stablecoin policies, injecting strong momentum into the US dollar stablecoin market.

Regulation and Dollar Hegemony: The Global Era of US Dollar Stablecoins

The OBBBA further strengthens stablecoin regulation and the international dominance of the US dollar. Section 606 encourages the Treasury Department to collaborate with international regulatory bodies to establish unified regulatory standards to ensure the stability and compliance of cross-border financial instruments. This will enhance the legitimacy and market trust of US dollar stablecoins, particularly in the global payment and remittance sector, attracting more institutional investors.

However, stringent anti-money laundering and reserve requirements may escalate compliance costs, causing small and medium stablecoin issuers to exit the market due to the burden, further consolidating the market landscape of US dollar stablecoins around giants like Tether and Circle.

Section 608 explicitly emphasizes the dominant role of the US dollar in international payments and reserves by restricting the substitution effect of other currencies, fully supporting the widespread use of the US dollar in cross-border transactions. This strategy not only solidifies the US financial hegemony but also indirectly promotes the circulation of US dollar stablecoins in the global market, preventing other stablecoins from challenging its status.

Conclusion

Although OBBBA may not seem directly related to the crypto market, its advocacy for tax policies and regulatory policies has created a favorable environment for U.S. crypto companies and USD stablecoins.

On the other hand, increasing military spending and strengthening the dominance of the U.S. dollar have laid a solid foundation for the global expansion of USD stablecoins. This is a bill that Trump was willing to push forward even at the cost of a fallout with Musk, and it may soon have a synergistic effect with multiple cryptocurrency and stablecoin bills, thereby supporting the demand for U.S. Treasuries and the USD's position.

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