After a tightly contested vote that required Vice President JD Vance to cast the deciding tie-breaker, the U.S. Senate has approved President Donald Trump’s extensive tax and spending package, known as the “One Big Beautiful Bill.”
The bill, which passed 51-50, now moves to the House of Representatives, but its passage has already ignited a high-profile feud between President Trump and tech billionaire Elon Musk, creating mixed signals for the crypto market.
📊 The Big Beautiful Bill has narrowly passed into its next step. Crypto markets are showing a clear bullish bias toward the controversial bill. We discuss the benefits for Bitcoin miners, Elon Musk’s frustration, and plenty more about the details. 👇https://t.co/MNkkQZouws pic.twitter.com/YuL4d7oKmD
— Santiment (@santimentfeed) July 1, 2025
What Does Trump’s Mega-Bill Mean for Crypto?
While the Senate version of the bill did not include major crypto-specific amendments, such as Senator Cynthia Lummis’s proposal to address staking and mining taxes, the broader impact on the market appears positive.
Related: Trump’s Mega-Bill Clears Senate, Pits the White House Against Elon Musk on Subsidies
The bill features significant tax reductions, including the elimination of taxes on tips and overtime pay, which would increase disposable income for millions of Americans. Historically, such consumer spending boosts have often correlated with a rise in Bitcoin prices as investors adopt a more “risk-on” stance.
Hidden Incentive for Bitcoin Miners
A lesser-highlighted but potentially significant provision in the bill is the reinstatement of 100% bonus depreciation for capital investments. This rule allows companies that purchase new equipment, such as Bitcoin mining rigs, to deduct the full cost from their taxable income immediately, rather than over several years.
This powerful tax incentive is expected to encourage mining companies to expand their operations in the U.S., which would in turn increase Bitcoin’s overall hashrate and strengthen the security of the network.
Why Did the Bill Spark a Feud with Elon Musk?
While the bill introduces tax cuts, it also mandates reductions in healthcare and green energy funding. This has sparked public disagreement between President Trump and Elon Musk, who criticized the bill’s implications and hinted at distancing Tesla from government partnerships. Following the Senate vote, Tesla’s stock declined alongside a slight drop in Bitcoin, reflecting a pattern where both assets often move in tandem during major political events.
Related: U.S. Senate to Vote on $4.2 Trillion Tax Plan This Independence Day
Musk’s remarks, including a disparaging reference to the bill and its potential impact on future-focused companies, have drawn attention within the crypto community. Additionally, Dogecoin was mentioned amid the discourse, linked humorously to Musk’s former “Department of Government Efficiency.”
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