Author: Bright, Foresight News
On July 1, the US Senate obtained enough votes in a procedural vote (51 votes in favor, 49 against) to advance the Trump administration's "One Big Beautiful Bill Act", which previously caused Musk to explode with anger.
Musk directly tweeted, "If this crazy spending bill (the 'Big Beautiful Bill') passes, a new political party will be established in the US the next day. Our country needs an alternative to the single-party Democratic-Republican system so that people truly have a voice." Subsequently, Musk continued to retweet posts criticizing the US debt and commented on the debt increase during Democratic and Republican administrations, "They are just pretending to be two parties, but in reality, they are just one."
A previous online poll showed that over 80% of voters believe the US needs a new political party.
In the early morning of July 1 Beijing time, the US Senate obtained enough votes in a procedural vote (51 votes in favor, 49 against) to advance the Trump tax reform bill, increasing the likelihood of its passage in the coming days. The bill, named the "One Big Beautiful Bill Act" (OBBB Act), contains multiple provisions spanning over 1000 pages, primarily focusing on tax cuts and spending reductions.
The bill will extend the corporate and individual tax cuts passed by Trump during his first presidential term in 2017, provide new tax breaks for tips and auto loans, raise the eligibility threshold for social welfare for low-income groups, significantly reduce clean energy subsidies in Biden's Inflation Reduction Act (IRA), increase defense spending, and provide more funding to combat illegal immigration.
Can the "Big Beautiful Bill" Make Crypto "Big and Beautiful"?
Beyond the debt ceiling dispute, Wyoming Republican Senator Cynthia Lummis is attempting to quietly incorporate an important cryptocurrency tax measure into Trump's massive budget bill, aimed at reducing tax burdens from basic cryptocurrency activities. Lummis proposed on Monday to include provisions in the congressional "Big Beautiful Bill" that would exempt small crypto transactions (below $300) from taxation.
The industry views this as streamlining the current practice of taxing crypto core activities—staking and digital asset mining—at both the beginning and end of activities.
The proposal also suggests setting an annual small transaction total cap of $5,000, significantly reducing the burden of calculating capital gains tax for those conducting only small digital asset transactions. Currently, Lummis's amendment has not been voted on and involves tax issues related to crypto lending, wash trading, and charitable donations.
The industry believes the amendment will eliminate many potential users' hesitations about trying cryptocurrencies. In fact, just yesterday, the US Supreme Court rejected Coinbase user James Harper's appeal against the IRS, refusing to hear his request to "protect user crypto transaction data from forced disclosure".
Once the amendment passes, investors' small transactions will be exempt from some tedious tax reporting procedures, and transaction data for daily transactions not involving large token purchases or sales will not need to be disclosed.
Additionally, Oregon Democratic Senator Jeff Merkley proposed an amendment to the "Big Beautiful Bill" that would prohibit elected officials from promoting or profiting from crypto tokens in which they have a financial interest. Cynthia Lummis strongly opposed this amendment, stating it would severely damage US innovation and competitiveness and impair the government's ability to effectively understand and regulate digital assets. It's clear that cryptocurrencies have become a fundamental economic source for the Republican Party.
Overall, the "Big Beautiful Bill" is viewed by the market as the first step in Trump's "liquidity injection", with Trump once again pressuring Powell on rate cuts. In response, Goldman Sachs has moved its Fed rate cut expectation from December to September. Perhaps massive liquidity injection is imminent?
