U.S. Senate Advances Major Bill That Could Impact Crypto Assets Tax Policy

On July 1st, the U.S. Senate passed a procedural vote with a result of 51 votes in favor and 49 votes against, advancing a bill known as "Big and Beautiful." This bill contains over 1,000 pages and primarily involves tax cuts and spending reductions.

The bill will extend the corporate and individual tax relief measures passed in 2017, provide new tax deductions for tips and auto loans, while raising the eligibility threshold for social welfare, cutting clean energy subsidies, increasing defense spending, and cracking down on funding for illegal immigration.

It is worth noting that a senator from Wyoming is attempting to incorporate cryptocurrency tax measures into the bill. This proposal includes tax exemption for small crypto asset transactions under $300 and sets an annual limit for small transactions at $5,000. This measure aims to alleviate the tax burden on small traders and may eliminate potential users' concerns about trying cryptocurrency.

However, the proposal has also sparked controversy. Some senators have proposed amendments to prohibit elected officials from profiting from Crypto Assets tokens in which they have a financial interest. This proposal has faced opposition from some lawmakers, who believe it could harm innovation and competitiveness in the United States in the field of digital assets.

The market generally views the "Big and Beautiful" bill as a signal for the government to loosen monetary policy. Some financial institutions have adjusted their expectations for the Federal Reserve's interest rate cuts, moving them from December to September. These changes may indicate that a more accommodative monetary environment is on the horizon.

For the Crypto Assets industry, this bill could have a significant impact. If the relevant proposals are passed, it will greatly simplify the tax reporting process for small traders, while also possibly affecting the government's access to Crypto Assets trading data. These changes could pave the way for the everyday use and popularity of Crypto Assets, but they have also sparked discussions about regulation and conflicts of interest.

As the bill progresses further, its specific impact on the Crypto Assets industry remains to be seen. In any case, this legislative trend shows that Crypto Assets have become an important topic of concern for U.S. policymakers.