The newly proposed 5% remittance tax, tucked into the House’s “Big Beautiful” tax reform bill, could have significant implications for cryptocurrency holders in America.
Proposed on May 13, the “One Big, Beautiful Bill” is a sweeping tax reform package introduced by House Republicans, aiming to make Trump-era tax cuts permanent while introducing new tax breaks and spending shifts.
The bill extends the 2017 tax cuts by Donald Trump during his first administration. It looks to eliminate federal taxes on tips, overtime pay, and car loan interest, and expand the Child Tax Credit.
However, the tax cut proposal is already causing commotion in the House of Representatives. While the bill offers a total of a $5 trillion cut to American taxpayers—it would also add new requirements for Medicaid coverage.
The non-partisan Congressional Budget Office estimates that up to 8 million Americans would be removed from Medicaid. The bill would also allegedly affect popular social programs such as food stamps and green energy programs.
Crypto’s Role in the Tax Debate
One of the bill’s most controversial additions is the proposed 5% remittance tax, which has major implications for cryptocurrency users. While the tax applies to traditional remittance providers like PayPal and MoneyGram, it exempts peer-to-peer crypto transactions—a loophole that could boost digital asset adoption.
As reported by CryptoInAmerica, unlike bank transfers or money-sending apps, self-custody crypto transactions would not be taxed under this law, making Bitcoin, Ethereum, and stablecoins an appealing alternative for cross-border payments.
If you’re looking to start trading, BTCC offers up to 10,055 USDT in welcome rewards just for signing up, depositing, and trading. You can trade over 300 crypto futures with leverage up to 500x and access all types of contracts, including perpetual futures and tokenized stocks.
