The Big and Beautiful Act, enacted in 2024, could significantly affect economic and strategic aspects, including the cryptocurrency market.
What is the Big and Beautiful Act?
The Big and Beautiful Act, officially titled 'The American Manufacturing Strengthening and Tech Repatriation Promotion Act', is a significant economic bill co-sponsored by Senator Josh Hawley and Representative Elise Stefanik. It aims to boost U.S. positions in critical sectors like AI and semiconductors through tax incentives and tech export controls. The act emphasizes the dominance of heavy industry and national sovereignty.
Impact on the Crypto Industry
Although the Big and Beautiful Act does not directly target cryptocurrencies, its sweeping manufacturing and technology policies are already causing ripples in the digital asset markets. Key aspects include:
- **Supply Chain Disruptions**: U.S. miners may face increased costs due to changing supply chains; - **Tighter Tech Controls**: Projects using AI and quantum technologies may face new regulations; - **Capital Movement**: Tax changes may alter the attractiveness of cryptocurrencies as a hedge asset.
Crypto Market Reaction to the Act
The cryptocurrency market reacted cautiously. While the act did not contain crypto-specific tax reforms, its budgetary changes could fuel long-term inflation pressures, enhancing Bitcoin's appeal as a safe haven. This is also expected to spark increased interest in alternative assets and adjust investor behavior. In the short term, the passage of the act may lead to price increases for both Bitcoin and Ethereum.
While the Big and Beautiful Act does not directly target the cryptocurrency market, its vast economic implications may significantly adjust investor strategies in digital assets.
