Trump Signs Bill, Raises U.S. Debt by $5 Trillion
- Trump’s new law impacts fiscal policy significantly.
- U.S. debt ceiling increases by $5 trillion.
- No immediate effect on cryptocurrencies observed.
The bill’s passage highlights important fiscal policy changes and increases borrowing capacity, potentially affecting markets.
The One Big Beautiful Bill (OBBB) was signed by President Donald Trump, raising the U.S. federal debt ceiling by $5 trillion on July 5, 2025. Senate and House GOP leaders pushed the bill through Congress, despite notable opposition from the House Democratic Leader, Hakeem Jeffries, who staged a lengthy filibuster.
“One Big Beautiful Bill is big and beautiful, delivering massive tax cuts and deregulation for the American people.” — Donald J. Trump, President, United States
The bill enacts permanent tax cuts, modeled on previous Trump-era reforms, with projected federal revenue losses of $4.5 trillion by 2034. While House Democratic Leader Hakeem Jeffries strongly opposed the measure, the Senate Finance Committee played a crucial role in its development.
Immediate market reactions to the bill show no direct impacts on major blockchains, with no reported unusual activity. However, U.S. fiscal policies can indirectly influence risk assets, including Bitcoin and Ethereum.
Despite lacking crypto-specific mentions, the bill could lead to increased demand for digital assets if fiscal uncertainty grows. Historically, increases in the debt ceiling have at times resulted in inflation hedge narratives boosting cryptocurrencies like Bitcoin.
The legislative move indicates broader economic trends, especially concerning fiscal responsibility and potential impacts on regulations governing digital assets. While there is no direct crypto-related response, market participants are closely monitoring any shifts in policy narratives. Mercatus analysts emphasize that while there might be increased interest in digital asset investments, the exact impact remains speculative without further government cues.
