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 supporter Vice President JD Vance casting a crucial supportive vote.

Read More: "What's in the 'One Big Beautiful Bill Act' That Made Musk Furious"

This bill, seen as the core of Trump's potential second term, sparked intense debates within the Republican Party and between the two parties. Its comprehensive fiscal policy is expected to impact the macroeconomic trends of the United States and the world. While OBBBA did not directly involve the crypto market, its provisions on U.S. debt, taxation, expatriate taxation, and regulatory policies may have far-reaching effects in the future on Bitcoin, crypto companies, and the U.S. dollar stablecoin market.

Raising the U.S. Debt Ceiling: Hedge Funds Flowing into Bitcoin

With OBBBA, this time the U.S. debt ceiling was raised to $50 trillion, authorizing the government to issue more debt to support fiscal expenditures. 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 decreasing, with major holder countries such as China and Japan continuously reducing their U.S. debt assets, reflecting a subtle shift in global investors' confidence. If debt expansion leads to inflation or a U.S. dollar credit crisis, funds may accelerate their exit from the U.S. debt market to seek new safe-haven assets. In this context, Bitcoin, as a potential U.S. strategic reserve and global store of value asset, may be favored.

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

"Double Standard" Tax Policy: Mixed Feelings 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 individual income tax rates between 10% and 37%, while raising the standard deduction by an additional $1,000 until 2028 and gradually increasing the child tax credit to $2,500 by 2028. Although primarily aimed at individuals, these tax policies indirectly benefit businesses, especially small and medium-sized enterprises, increasing the disposable income of business owners and investment potential.

For many small to medium-sized cryptocurrency companies, this means more funds can be allocated to 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 this opportunity to attract venture capital funding and expedite product launches.

The OBBBA also raises the state and local tax (SALT) cap from $10,000 to $40,000, with a 1% annual increase from 2025 to 2029, reverting to $10,000 after 2030, and setting a 30% phasedown mechanism 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 company Riot Blockchain) and crypto enthusiasts are concentrated. The tax relief will free up more capital for business owners and investors, indirectly boosting the research or investment in cryptocurrency projects.

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

However, the OBBBA imposes significant barriers on non-U.S. cryptocurrency companies. Section 899 of the OBBBA allows the U.S. Treasury to impose additional tax measures on entities of countries that implement discriminatory taxation, especially concerning digital services tax, in response to international tax policies targeting U.S. tech and digital companies.

This policy raises the barriers for foreign crypto companies to enter the U.S. market, significantly increases the operating costs of international crypto companies in the U.S. market, and may deter crypto companies from other countries from investing in the U.S. This poses a challenge to U.S. small and medium-sized crypto companies that rely on international funding for cross-border collaboration. The reduction in foreign capital inflow may also weaken the demand for compliant U.S. dollar stablecoins, exacerbating market fluctuations.

Investment Depreciation Allowance: Opportunities and Challenges for Mining Companies

The OBBBA allows businesses to take 100% immediate depreciation on eligible capital assets (such as equipment, software, and certain real estate) in Section 70307, and explicitly extends this benefit to the 2030 fiscal year. This provision will allow crypto mining companies to fully deduct the cost of mining equipment in the purchase year. This not only reduces the operating costs of mining companies but also enhances miners' profitability. It also facilitates mining companies to upgrade hardware or expand mining operations using additional income from founders and shareholders, easing some operational pressures when energy costs are high.

However, the OBBBA reduces the clean energy tax credits under the "Inflation Reduction Act," which may put pressure on mining companies. This move will weaken support for investments in green energy. As crypto mining companies are highly energy-intensive, the reduction in clean energy tax credits may increase the cost of renewable energy, adding to the operational burden of mining companies. The rise in clean energy costs may force mining companies to turn to fossil fuels, sparking environmental controversies and increasing compliance costs.

Remittance Tax and GENIUS Act: USD Stablecoin Market Accelerates Expansion

Remittance Tax and GENIUS Act: USD Stablecoin Sees Growth Opportunities

OBBBA has introduced a 1% Remittance Tax, significantly raising the cost of traditional cross-border remittances, directly impacting immigrants, merchants, and international trade reliant on remittances. Traditional bank transfer fees usually range from 2% to 5%, and with an additional 1% tax burden, the cost becomes overly burdensome, prompting users to seek lower-cost alternatives.

Furthermore, Section 70604 expressly states that digital asset transfers will be exempt from the Remittance Tax, highlighting the advantages of low-cost, low-fee, and efficient USD stablecoins in cross-border payments. Especially in regions with high immigrant populations heavily reliant on remittances such as Latin America, Asia, and Africa, OBBBA's move is expected to further drive the USD stablecoin market's vibrant growth in these areas.

Simultaneously, the previously proposed GENIUS Act requires stablecoin issuers to back their issuance with USD or short-term Treasury bonds at a 1:1 ratio. Analysis suggests that this will unleash new demand of $1.2-1.6 trillion for US bonds, and OBBBA's $5 trillion debt ceiling increase neatly meets this growth demand, creating a synergistic effect with the USD stablecoin policy, injecting strong momentum into the USD stablecoin market.

Regulation and USD Hegemony: The Global Era of USD Stablecoins

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

However, stringent anti-money laundering and reserve requirements may increase compliance costs, causing small to medium-sized stablecoin issuers to exit the market due to the burden, further concentrating the USD stablecoin market landscape around giants like Tether and Circle.

Section 608 explicitly strengthens the USD's dominance in international payments and reserves by limiting the substitutability of other currencies, fully supporting the broad application of the USD in cross-border transactions. This strategy not only consolidates the US financial hegemony but also indirectly promotes the circulation of USD stablecoins in the global market, averting challenges to its position from other currencies and stablecoins.

Conclusion

While OBBBA may seem unrelated to the cryptocurrency market, its tax and regulatory policies have created a favorable environment for US crypto companies and USD stablecoins' growth. Increasing military spending and strengthening USD dominance have laid a solid foundation for the global expansion of USD stablecoins. This legislation, which Trump was willing to push even at odds with Musk, may synergize with multiple cryptocurrency and stablecoin bills in the near future, boosting US bond demand and USD dominance.

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