Trump Signs ‘Big, Beautiful Bill’ as ‘Crypto Week’ Looms, Reshaping Bitcoin and Stablecoin Landscape

Bitcoin Faces Fiscal Shock as Lawmakers Push Stablecoin Rules

President Donald Trump has signed his sweeping $3.3 trillion fiscal policy package—nicknamed the “Big Beautiful Bill”—into law, setting off ripples across crypto markets already on edge from mounting inflation fears and regulatory crossfire. The legislation, now fully enacted ahead of the July 4 holiday, is expected to push the U.S. national debt well past the $3 trillion mark, intensifying concerns over dollar debasement and fueling bullish momentum for Bitcoin. With no concrete path to spending cuts and rising fiscal deficits, the bill is being interpreted by analysts as a catalyst for renewed institutional interest in crypto assets, particularly those with hard-capped supplies.

Bitwise CIO Matt Hougan emphasized the macro significance, stating this marks a shift toward “debasement by design.” He warned that Washington has effectively cornered itself into inflating away its debt—a process he believes strengthens the case for assets like Bitcoin, gold, and real estate. Citing analysts like Lynn Alden and Ray Dalio, Hougan argued that while the dollar may appear relatively strong against the euro and yen, its real weakness is exposed when measured against finite real-world stores of value. With Bitcoin's fixed 21 million supply and growing role as an inflation hedge, institutional allocation trends appear poised to accelerate.

Bitcoin’s reaction has been mixed. On July 2, the asset slipped 1.3% to $105,859 amid short-term jitters over Fed policy uncertainty. Federal Reserve Chair Jerome Powell, speaking at a European Central Bank event, attributed his delayed interest rate decisions to Trump’s tariffs and deficit-driven fiscal stance. He underscored a “wait and see” approach, brushing off Trump’s public rebukes—including the former president branding him a “stubborn mule”—and added that inflationary pressures continue to complicate the path forward. Powell also voiced cautious support for regulating stablecoins under a unified federal-state framework, acknowledging their likely permanence in financial markets.

Meanwhile, regulatory battles have intensified around the GENIUS Act, which seeks to establish the first federal stablecoin framework. The bill, already passed by the Senate in a 68–30 vote, mandates 1:1 backing for stablecoins with U.S. dollars or equivalent liquid assets, along with monthly reserve disclosures and consumer protection rules in bankruptcy scenarios. Trump has urged immediate House passage via a Truth Social post: “Get it to my desk, ASAP—NO DELAYS, NO ADD ONS.” The urgency reflects a broader GOP push to finalize multiple crypto-focused bills during a dedicated “Crypto Week” set for July 14–18, which also includes the CLARITY Act and a bill to ban a Federal Reserve-issued CBDC.

Not everyone is on board. New York Attorney General Letitia James has blasted the GENIUS Act as a threat to financial stability and national security, warning that it fails to hold stablecoin issuers to the same standards as traditional banks. In a letter to Congress, James called for FDIC-level protections, stronger anti-fraud measures, and mandatory digital ID verification. She also criticized the CLARITY Act, which aims to provide clearer regulatory treatment for digital assets, accusing it of shielding bad actors and weakening investor safeguards. Her opposition underscores the growing rift between federal ambitions and state-level resistance.

Despite aggressive lobbying, the final version of the bill notably excluded tax benefits long sought by crypto advocates—including deductions for staking and favorable treatment for crypto-holding businesses. The decision reveals an underlying tension between the bill’s pro-growth narrative and its cautious treatment of digital assets within the broader fiscal framework. As monetary policy remains tight, regulatory infighting escalates, and the dollar faces structural headwinds, digital assets appear to be navigating an increasingly volatile but defining moment. For Bitcoin and the broader crypto market, the intersection of fiscal stimulus, dollar pressure, and divided oversight may shape price behavior well into 2026.

This article has been refined and enhanced by ChatGPT.