U.S. tax cut legislation approved

Key Points:* Sensational vote in Senate, tax legislation moves towards House approval.

• Projected to increase U.S. deficit over $3 trillion in ten years.
• No crypto-specific impact; potential macroeconomic influences are possible. Republican Senator Dave McCormick expressed optimism, suggesting the provisions would positively affect American families and security. He stated, “No bill is perfect, but these provisions will make a real difference in the lives of people working hard to make ends meet and raise their families across the Commonwealth. I also believe that the historic investments in the border, law enforcement, and defense will benefit all Pennsylvanians in the coming years, as will the important provisions that will unleash Pennsylvania energy.”

This bill extends tax cuts, potentially affecting the U.S. economy’s fiscal balance, with market observers watching for broader influences on inflation and growth.

Senate Tax Bill Spurs Economic Debate

The U.S. Senate passed significant tax legislation on July 1, 2025, which was characterized by President Donald Trump as big and beautiful. Vice President JD Vance played a critical role, casting a decisive tie-breaking vote after a highly contentious debate among senators.

The bill advances towards the House of Representatives under immense pressure to meet the July 4 deadline set by President Trump. Key provisions include extending permanent income tax cuts from 2017 and increasing the Child Tax Credit.

Bitcoin Steady Amid Potential Macro Shifts

Did you know? The only previous major fiscal policy resembling this scale was the 2017 Tax Cuts and Jobs Act, which impacted U.S. fiscal policy substantially.

Based on CoinMarketCap data, Bitcoin (BTC) is trading at $106,836.42, with a market cap of $2.12 trillion and a 24-hour trading volume showing a 4.43% change. The circulating supply is nearing 19.89 million coins, with a maximum supply capped at 21 million.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 06:19 UTC on July 2, 2025. Source: CoinMarketCap Coincu research indicates potential market volatility from indirect macroeconomic factors such as increased federal deficits and inflationary pressures. Investors may monitor Bitcoin and Ethereum closely for shifts in investment patterns. To understand the broader implications of fiscal policies, the CBO report on economic outlook and budget projections provides detailed insights.

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