No Crypto Wins in Trump’s ‘Big Beautiful Bill,’ but Markets Still Cheer the Liquidity Boost

President Trump’s much-hyped budget bill has officially passed, but for the crypto community, there were no direct victories. No mining tax fixes, staking relief, or Bitcoin anywhere in sight. Yet, the crypto market still smiled.

Why? Because even without a single mention of blockchain or digital assets, the budget’s ripple effect is already showing up in market momentum. Let’s unpack what happened and why this might still be a silent win for the crypto world.

Trump’s Budget Passes—But Crypto Was Left Out

On June 3, the U.S. House passed House Resolution 1, dubbed the “Big Beautiful Bill” by Trump himself. It’s a sweeping budget package designed to extend tax cuts, ramp up immigration enforcement, and trim down entitlements like Medicaid. The bill passed narrowly, with a 218–214 vote. Just two Republicans broke ranks—Thomas Massie of Kentucky and Brian Fitzpatrick of Pennsylvania.

Both opposed the bill for different reasons. Massie warned about the ballooning deficit. Fitzpatrick, an anti-Trump moderate, refused to support the fiscal plan altogether. Crypto supporters had hoped for more. In the lead-up to the vote, Senator Cynthia Lummis, a well-known advocate for digital assets, tried to introduce amendments addressing critical pain points in the crypto space. These included:

• Clarifying tax treatment for mining and staking
• Adjusting capital gains rules for frequent traders
• Creating clearer definitions for digital assets

None of them made it into the final bill. Instead, they were sidelined for future discussions. Lummis did introduce a new standalone crypto tax bill the same day, but for now, crypto got zero love from Trump’s flagship legislation.

Market Reacts Positively Anyway

Despite the snub, Bitcoin ticked up by 0.24%, hovering around the $110,000 mark, while the broader crypto market added 0.3% in total capitalisation. Not exactly fireworks, but not a sell-off.

This positive sentiment didn’t come from the bill’s content but from what the bill represents. According to economists, the legislation could increase the U.S. deficit by $3 trillion to $4 trillion over the next decade. With expanded tax cuts and heightened spending, the government is about to inject massive liquidity into the system. For crypto, liquidity means opportunity.

Liquidity Is the Silent Engine of Crypto Growth

Crypto thrives in high-liquidity environments. When cash is cheap, markets get risk-on. Investors rotate into assets with higher potential returns, and while traditional equities benefit too, crypto is often where the biggest gains are chased.

More liquidity tends to flow into:

• Bitcoin, as a hedge against fiat devaluation
• Ethereum, due to growing DeFi activity
• Altcoins, for speculative upside

When central banks cut rates or when governments start spending big, crypto usually rides the wave. That’s why this budget, despite ignoring crypto explicitly, is being seen as a bullish macro trigger.

It’s not unlike 2020, when the COVID stimulus checks helped fuel a retail boom in digital assets. More cash in the system means more hands ready to speculate.

A Missed Legislative Moment

Still, the absence of crypto language wasn’t just a disappointment but a missed opportunity. The U.S. is at a pivotal moment in crypto regulation; from stablecoin oversight to taxation on staking rewards, the lack of clarity is frustrating builders and investors alike.

The fact that none of the proposed amendments made it in, even from seasoned crypto advocates, suggests that Washington still views digital assets as a second-tier priority. That might change, but for now, the space will have to continue waiting.

Lummis Still Fighting the Good Fight

On a more hopeful note, Senator Lummis isn’t giving up. The same day the budget passed, she introduced a new bill focused on crypto taxation. It’s still early-stage, but her focus is clear: give crypto holders and miners better clarity on how their activities are treated by the IRS.

This could include:

• Exemptions for certain low-value transactions
• Changes to the way staking rewards are taxed
• Simpler tax reporting thresholds

With bipartisan interest in regulating crypto more sensibly, Lummis’ bill might have a better shot in the coming months, especially if she can build broader political support.

Wall Street Watching Closely

Meanwhile, Wall Street and institutional players are paying close attention to the budget’s side effects. Liquidity means better trading conditions, and for large funds exposed to Bitcoin, Ethereum, or other tokens, this means potential portfolio growth. Some analysts even speculate that the budget bill could reignite ETF demand in the coming quarter.

“Even without direct crypto legislation,” one fund manager noted, “you’ll see capital rotate back into Bitcoin if liquidity keeps rising and interest rates begin to taper.” That’s the bet many are making, and markets are already responding.

The Big Picture

Let’s be clear—this bill doesn’t solve anything for crypto. It doesn’t regulate stablecoins. It doesn’t fix the staking tax confusion. It doesn’t help with compliance. It might add to the federal deficit without preparing the system for the emerging financial rails that crypto offers.

In a strange twist, that same deficit growth might accidentally benefit the industry. As traditional systems pump liquidity into the market, crypto will catch some of the overflow. If that’s paired with future regulatory clarity, the result could be an even stronger bull case for digital assets by late 2025.

Trump’s “Big Beautiful Bill” didn’t carry any gifts for crypto. No amendments, carve-outs, or even a mention. But for market watchers and traders, the story isn’t over. With the passage of this bill, the financial system is poised to see an injection of fresh liquidity, and that’s exactly the fuel the crypto sector tends to thrive on. Call it a backdoor win, but it has room to run.