Trump’s Tax Bill Reform: Implications for US Economy and Crypto Markets

The newly passed TRUMP tax bill has averted a projected $4 trillion tax increase that would have hit American households upon the expiration of 2017 cuts. This sweeping reform permanently extends lower individual tax brackets, enhances standard deductions, and preserves the 20% small business deduction—immediately boosting take-home pay for millions.

While the legislation delivers short-term relief, Representative Thomas Massie warns of looming budget deficits that could fuel sustained inflation and higher interest rates. Such macroeconomic conditions historically create volatility in traditional markets while driving capital toward alternative assets like cryptocurrencies.

The crypto market often thrives in inflationary environments as investors seek inflation-resistant stores of value. Bitcoin and Ethereum typically benefit from such fiscal policies, while tax-advantaged business structures could accelerate adoption of crypto payment solutions among SMBs.