The Bill That Roared
President Trump’s sweeping “Big, Beautiful Bill” has officially passed both chambers of Congress and was signed into law by the commander in chief on the 4th of July, bringing with it a mix of fanfare, frustration, and fiscal fireworks. Touted as a landmark win for economic freedom, the bill promises massive tax cuts, deregulation, and a new direction for America’s financial policy.
But for the crypto industry, this isn’t just another tax reform package. It’s a fork in the road. Packed into nearly 400 pages are some of the most consequential shifts in how the U.S. defines, taxes, and interacts with digital assets.
Depending on your vantage point, it’s either a bold step forward for innovation—or the start of a compliance headache.
Macro Tailwinds for Crypto
Pro‑Crypto Provisions Signal Opportunity—not Certainty
The “Big, Beautiful Bill” doesn’t regulate crypto directly—but it may reshape the economic environment it operates in. And that might be just as important.
- Retail Boom, Real Risk—Crypto’s Next Compliance Test
By locking in Trump-era tax cuts and adding new incentives—like zero taxes on tips up to $25,000 and tax-free overtime pay up to $12,500—the “Big, Beautiful Bill” injects extra liquidity into the hands of everyday Americans. And historically, when people have more disposable income, some of it flows into high-upside, high-volatility markets like crypto.
That’s a potential growth story—but also a compliance challenge.
As more first-time or novice investors step into the space, many without deep technical knowledge or a strong grasp of crypto risk, the burden on industry players rises. Businesses will need to revisit their consumer protection protocols—not just to meet regulatory expectations, but to ensure newcomers aren’t left exposed to scams, hype-driven losses, or poor disclosures. It’s not just about onboarding new investors. It’s about protecting them once they arrive.
• Deficit Spending and Inflation Worries
The legislation raises the debt ceiling and increases federal spending across the board, with estimates suggesting it could add $2.8 to $5 trillion to the national debt over the next decade. For crypto investors and evangelists, that’s not just a headline—it’s a signal. Bitcoin’s “digital gold” narrative gains strength in times of inflation and dollar devaluation.
• A Softer Tone on Regulation
While the bill doesn’t overhaul crypto policy, it sends a message: this administration is leaning toward deregulation and pro-growth economics. That broader tone could create a more favorable environment for digital asset startups and Web3 experimentation.
Why it matters:
Even without direct crypto legislation, this bill changes the weather. If inflation creeps up and the government keeps the guardrails loose, expect increased appetite for decentralized assets. Just don’t mistake tailwinds for guarantees—smart compliance still matters.
And here’s the broader context: As federal policy leans pro-growth and deregulatory, regulators at the state level have been ramping up their scrutiny in parallel—particularly on advertising claims, disclosures, and consumer protections.
Crypto and the New 1% Remittance Tax: Who’s Holding the Bag?
Tucked into the back half of the “Big, Beautiful Bill” is a provision that hasn’t made as many headlines—but could have ripple effects for certain crypto businesses. Section 70604 introduces a new 1% excise tax on cross-border remittance transfers, but only when the sender pays in cash, money orders, cashier’s checks, or similar physical instruments.
On paper, this isn’t aimed squarely at crypto. But for exchanges and MSBs that handle cash-funded transactions or operate hybrid models—think kiosks, retail locations, or OTC desks—it could apply. If you’re taking physical cash for international transfers, you may now be responsible for collecting that tax and remitting it to the Treasury. And if the sender doesn’t pay? You may be on the hook.
Here’s where it gets sticky: under this setup, crypto MSBs could find themselves in the unfamiliar role of tax collector—tracking which transfers qualify, collecting the tax at the time of transfer, and reporting it to the government quarterly. While transfers funded by U.S. bank accounts, debit cards, or credit cards are explicitly exempt, cash-heavy models will need to tread carefully.
The tax doesn’t go into effect until 2026, but crypto businesses should use this window to:
- Engage qualified legal counsel and tax professionals.
- Evaluate potential exposure based on funding methods and other aspects of their fact pattern.
- Determine whether they’re considered a “remittance transfer provider” under federal law.
- Start mapping compliance workflows to track, collect, and report remittance tax obligations where necessary.
Even at 1%, this shift is meaningful—not just for operations, but for what it signals: a growing expectation that crypto businesses may play a bigger role in tax collection and financial surveillance.
Collateral Damage
The tax doesn’t discriminate based on income or purpose. It applies to small transfers just as it does to large ones—meaning military families, foreign-born workers, and underbanked communities may bear the brunt of the policy.
For an industry that claims to champion inclusion, this is a serious potential reputational risk.
What This Means for Crypto Businesses
This bill is not a one-size-fits-all win or loss. It’s a rebalancing—with both opportunity and risk baked in.
Opportunities:
- New consumer demand driven by inflation fears and extra disposable income
- Affirmation of the importance of Bitcoin as a hedge against mounting deficits and growing uncertainty
Risks:
- An influx of inexperienced investors entering the space increases the risk of scams, misinformation, and losses
- Ongoing uncertainty around remittance tax applicability to crypto could impact customer behavior and cross-border transactions
- Rising compliance costs, particularly for MSBs impacted by 1% remittance tax
Crypto businesses need to do what they do best—adapt quickly.
American Crypto is now Bigger. Bolder. And a Bit of a Minefield.
Love it or hate it, the “Big, Beautiful Bill” makes one thing clear: crypto is no longer operating on the fringe—it’s center stage in U.S. policy. The industry has been handed a mixed bag of bold promises and buried obligations.
If you’re a crypto operator, the time to act is now. Don’t wait for enforcement or confusion to catch up. Whether the bill marks a renaissance or a regulatory reckoning depends on how you respond.
At BitAML, we help crypto businesses stay ahead of complex regulations without losing their edge. If you’re unsure how a proposal like this could affect your AML program, operations, or risk profile, let’s talk. Schedule a complimentary discovery call with our team. Let’s protect crypto’s future—and your business.
