- Trump’s tax bill proposes a 5% excise duty on remittances from non-U.S. citizens
- Market watchers have voiced mixed takes on the bill’s likely impact on the crypto sector
On Sunday, the U.S Congress advanced President Donald Trump’s “big, beautiful” tax bill from the House Budget Committee. According to analysts, the tax bill might benefit crypto adoption if passed into law.
Trump’s tax bill – Impact on crypto
The bill aims to cut spending and introduce a 5% tax on money sent by non-U.S. citizens to their home countries.
Others like Mexico’s Ambassador to the U.S Esteban Montezuma Barragán have reportedly opposed the proposal though, citing double taxation and a potential jump to other unregulated alternatives for remittances.
“Many migrants might seek informal or unregulated means to do so, complicating oversight and control of these financial flows.”
Likewise, Coin Center, a crypto policy advocacy group, echoed a similar position. However, they view it to have a likely mixed outcome for the sector.
In a statement, Coin Center’s Director Peter Van Valkenburgh stated,
“The tax bill is inherently pro-surveillance and its implications for crypto are complex and worrying.”
However, he also noted that such a scenario would push users to privacy-focused crypto tools.
“The current implementation in the Big Beautiful Bill will penalize privacy, complicate compliance for law‑abiding exchanges, and push users toward self‑hosted crypto tools—which remain fully legal and, under this very bill, entirely outside the tax’s scope.”
That being said, another nonpartisan report claimed that the bill would add an extra $3 trillion to $5 trillion to the United States’ unsustainable fiscal debt.
In fact, Moody’s downgraded the country last Friday, reflecting the precarious state of the U.S economy. However, U.S Treasury Secretary Scott Bessent dismissed the downgrade and remains confident that the tax bill will drive more growth than the debt owed.
For Matthew Pines, another policy advocate and director at Bitcoin Policy Institute, the bill’s long-term impact on BTC could be positive.
Trump’s policies have been key market drivers since February. In fact, his tariff hardline disturbed markets in late Q1 and early April, dragging BTC below $76k.
Surprisingly though, he softened his position afterwards, as shown by the U.S.-China trade deal which pushed BTC to $107k in May.
Therefore, apart from an unintended impact on crypto adoption through cheaper, private remittances, it remains to be seen how the bill might impact market prices.
