Crypto Gets Nothing in Trump’s Budget—But Why Is Bitcoin Rising?

Trump’s ‘Big Beautiful Bill’ Passes With No Crypto Provisions – But Bitcoin Still Rises

The crypto community didn’t get the legislation it was hoping for, but there’s still a silver lining. On July 3, the U.S. House passed President Donald Trump’s much-hyped “Big Beautiful Bill”, a sweeping budget that affects taxes, spending, immigration, and entitlements. While the bill contains no direct support for crypto, it may still benefit digital assets—thanks to the massive liquidity boost it’s expected to deliver.

Let’s break down what happened, why the crypto world is watching, and how markets are already reacting.

 What Is the “Big Beautiful Bill”

President Trump’s budget proposal, officially passed as House Resolution 1, is a landmark economic package that:

• Expands tax cuts, especially for corporations and high earners

• Cuts back on benefits like Medicaid and food assistance

• Strengthens immigration enforcement spending

• Adds an estimated $3–$4 trillion to the U.S. deficit over the next 10 years

The bill passed narrowly in the House with a 218–214 vote. Only two Republicans opposed it—Rep. Thomas Massie of Kentucky, citing the ballooning deficit, and Rep. Brian Fitzpatrick, known for his frequent opposition to Trump policies.

 Crypto Completely Left Out – Despite Lobbying Efforts

 Lummis’s Crypto Amendments Rejected

Many in the crypto industry were hoping this budget would include much-needed crypto tax reforms. Senator Cynthia Lummis, a leading pro-crypto voice, had introduced amendments that would:

• Clarify tax treatment for staking and mining income

• Simplify reporting rules for digital assets

• Provide clear guidance for individuals and small businesses involved in crypto

Unfortunately, none of these amendments made it into the final bill. However, Lummis did introduce a separate crypto tax bill the same day, signaling that the fight for clearer crypto regulation is far from over.

 So Why Did Bitcoin Go Up

 Liquidity Is the Hidden Crypto Catalyst

Even without direct crypto provisions, markets responded positively to the budget’s passage.

• Bitcoin (BTC) rose to trade near $110,000, up 0.24% in 24 hours

• Total crypto market cap climbed 0.3%

• Equity markets also edged higher, reflecting broader optimism

Why the bump

The answer lies in liquidity. The bill is expected to significantly increase deficit spending, which economists estimate will inject trillions into the U.S. financial system. When that much money flows into the economy, it typically boosts asset prices—including both stocks and crypto.

Investors expect:

• Lower interest rates for longer

• More dollars chasing fewer assets

• Increased risk appetite for alternatives like Bitcoin

 What the Budget Means for Crypto in the Long Run

Even though this specific bill didn’t tackle digital assets, it sets the stage for a crypto-friendly environment:

1. More liquidity = higher crypto valuations.
   Deficit spending often results in easy money conditions that benefit risk-on assets like crypto.

2. Future crypto legislation could piggyback on rising valuations.
   As prices rise, so does industry influence—giving lawmakers like Lummis more leverage in future bills.

3. Traditional finance alignment.
   The budget’s business-friendly tone could pave the way for crypto adoption by institutional players seeking tax-efficient returns.

What to Watch Next

 Lummis’s Standalone Crypto Tax Bill

Though her amendments were rejected from the main budget, Senator Lummis introduced a new standalone bill focused solely on crypto tax clarity. Key areas to watch:

• Whether it gains bipartisan support

• How the IRS responds with new enforcement or leniency

• If it’s attached to any future spending or finance bills

 Senate’s Response

The House passed the budget, but now all eyes are on the Senate. If the Senate amends the bill or delays it, markets could get volatile. But if the Senate passes it quickly, the expected liquidity boost could materialize sooner.

 Crypto Didn’t Get a Win—But Might Still Get a Windfall

While many crypto investors were disappointed that Trump’s “Big Beautiful Bill” ignored digital assets, the markets aren’t sulking. Instead, they’re pricing in the potential impact of trillions in new government spending.

This bill isn’t about crypto—but it may set up the perfect environment for crypto to thrive. And with lawmakers like Cynthia Lummis still pushing for clear regulation, digital assets may not be left out for long.

For now, the message is clear:

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