The U.S. Senate has passed President Trump’s sweeping $3.3 trillion “Big Beautiful Bill” by a razor-thin margin, pushing forward one of the most ambitious fiscal packages in recent memory. But beyond the headline-grabbing stimulus and infrastructure spend, the bill carries potential implications for Bitcoin and the broader crypto market.

Markets responded with characteristic volatility. Bitcoin briefly dropped below $106,000 during the Senate proceedings, down from recent highs near $107,800—though analysts suggest the move remained within expected range and may not be directly tied to the bill. Nonetheless, the broader fiscal outlook—massive new spending and ballooning deficits—could prove inflationary, a scenario historically favorable to Bitcoin’s “digital gold” narrative.

Importantly, contrary to early reports, the bill may not be entirely silent on crypto. A last-minute push from Senator Cynthia Lummis could see key digital asset tax reforms included in the final legislation. Proposed changes under discussion include a de minimis exemption—excluding capital gains taxes on crypto transactions under $300 or $5,000 annually—as well as reforms to delay taxation on staking and lending rewards until the assets are sold, rather than when they are earned.

These changes aim to reduce tax friction for everyday users and could meaningfully lower the reporting burden for small transactions and DeFi activity. If retained as the bill moves through the House, such provisions may drive new retail adoption and greater participation in staking and decentralized finance protocols.

Still, the fiscal uncertainty introduced by the bill’s sheer size has investors wary. While inflationary spending might support Bitcoin in the long run, it also heightens macro volatility—something crypto markets remain sensitive to.

As the bill heads to the House for reconciliation, the final inclusion or exclusion of crypto-specific provisions will be closely watched by both industry participants and regulators. For now, Bitcoin remains perched at the intersection of policy, politics, and macroeconomic pressure.