When the Big and Beautiful Act meets the Bitcoin Strategic Reserve

In the clamor of politics, a bill is often the ultimate battlefield of national will and ideology. Currently, the "One Big Beautiful Bill" (OBBBA) pushed by the Trump administration is precisely such a high-stakes gamble. This legislation aimed at permanently enshrining the 2017 Tax Cuts and Jobs Act (TCJA) has not only triggered intense partisan battles in Washington but has also stirred every nerve from tech elites to Wall Street due to its far-reaching economic implications. However, if we merely view it as a traditional tax cut debate, we would miss the more grand and unsettling landscape behind it. A profound paradox is emerging: while the United States may be heading towards an unsustainable fiscal cliff warned by both officials and markets, the same administration is simultaneously pursuing an unprecedented revolution embracing decentralized assets like Bitcoin. Is this a policy schizophrenia or a meticulously designed, breathtaking bet to hedge national risks? To unravel this puzzle, we must delve into two seemingly parallel yet converging policy lines: one of expansionary fiscal policy that could undermine the dollar's credibility, and another of a grand vision to transform the United States into the "world's cryptocurrency capital". [The rest of the translation follows the same professional and accurate approach, maintaining the original tone and meaning while translating into English.]

Collision or Symbiosis? The Fascinating Cycle of Fiscal Expansion and Digital Assets

Now, we return to that core paradox: the path of expansionary tax cuts that might lead to fiscal unsustainability, and the path of a radical pro-cryptocurrency approach - what exactly is their relationship? The answer may be more complex and nuanced than we imagine, potentially forming a high-risk symbiotic strategy.

First, OBBBA creates "fertile ground" for crypto assets. Debt-financed fiscal stimulus driven by massive tax cuts is highly likely to become a powerful accelerant for risk asset prices, including cryptocurrencies. When government deficits are high, central banks might be forced to prioritize financing government needs over controlling inflation, known as "fiscal dominance". In such a macroeconomic environment, massive liquidity will seek an outlet, and assets like Bitcoin with limited supply and high liquidity sensitivity are natural beneficiaries.

Secondly, Bitcoin becomes a tool for hedging national risk. In this context, the decision of "strategic Bitcoin reserves" becomes particularly intriguing. This can be interpreted as: on one hand, the US government is pursuing a fiscal policy that may long-term pressure its sovereign currency (USD) credit, while on the other hand strategically acquiring and stockpiling a non-sovereign asset whose core value precisely hedges the risk of sovereign fiat currency depreciation (Bitcoin).

This forms an astonishing policy loop: The government seems to be actively creating macro conditions (long-term fiscal pressure) that might cause its strategic reserve assets (Bitcoin) to appreciate. This is a rare operation of a nation using its macro policy to hedge its own balance sheet, and a strategic layout to seize the initiative in the global sovereign wave of exploring Bitcoin holdings.

Finally, tax policy completes the incentive loop. The OBBBA bill permanently maintains personal income tax provisions, retaining a relatively crypto investor-friendly capital gains tax structure. Long-term holders (over one year) can enjoy significantly lower tax rates compared to ordinary income. This arrangement encourages investors to hold digital assets long-term through tax leverage, completely aligned with the government's grand goal of cultivating a stable, mature digital asset market in the United States.

An expansionary fiscal environment, a national-level strategic reserve, and a tax system friendly to long-term investors - these three together constitute a powerful policy package aimed at attracting, retaining, and appreciating global crypto capital.

Summary

In conclusion, the Trump administration's economic agenda is a profound and bold paradox. Under the name of the "Big and Beautiful Bill", it continues a path widely warned as potentially leading to a fiscal cliff. Yet simultaneously, it embraces Bitcoin in an unprecedented manner, elevating it from a marginal asset to a national strategic level.

Is this a forward-looking, coherent strategy - aimed at stimulating the economy through short-term fiscal expansion while seizing the high ground of the next-generation financial revolution by embracing digital assets? Or is it an all-or-nothing, high-risk gamble - attempting to hedge the potential long-term adverse consequences of its own policies by betting on an external asset while domestic fiscal risks continue to accumulate?

Never in history has any major economy pursued such aggressive deficit fiscal policies while making such a clear strategic bet on a decentralized digital asset. This "Big and Beautiful" bill, along with its cryptocurrency gambit, will not only define this administration's economic legacy but may also become the trigger for restructuring the global financial order. The world holds its breath, waiting for the ultimate outcome of this stunning bet.