US President Joe Biden signed a comprehensive $750 billion health, tax and climate bill at the White House on Tuesday. This marked a great victory for his administration and the Democratic Party before the midterm elections. Aside from the political and economic implications of this issue, crypto investors are considering how Bitcoin (BTC) will be affected. Here are the details…
President Biden signs the bill
Biden said at a signing ceremony that the so-called “inflation reduction law” is “one of the most important laws in our history.” Addressing Democratic Congress members and administration officials, Biden said, “The American people won with this law. Those with special interests lost,” he said. Biden has also made many other gains in the past few months, including a bipartisan gun reform bill. He sent billions of aid to Ukraine. Russia’s invasion and aid to Finland and Sweden starts the process of joining NATO.
The act represents the largest climate investment in American history. It also points to important developments in terms of health. The legislation will reduce the deficit, payable through new taxes, including a 15% minimum tax on large corporations and a 1% tax on stock buybacks. It will improve the Internal Revenue Service’s collection capability. In his remarks, Biden offered harsh criticism to Congressional Republicans for voting against the bill, turning their opposition into a call to action at the ballot box.
A series of events focused on the presentation of the new law are expected to take place in the coming weeks. The White House said Biden will soon host a Cabinet meeting focused on enforcing the law. He said he would travel across the country to highlight the bill’s impact on Americans. Senate Democrats had long hoped to pass a signature legislative package that would include key agenda items for the party, but struggled for months to reach a deal that received the full support of their own group.
How will Bitcoin and altcoins be affected?
As a result, the law in question allocates billions of dollars in budgets to various fields. Apart from this, a solution to the inflation-related problem is expected in the country. It is expected that cryptocurrencies will also be affected by the economic clauses in the law. Because inflation also affects Bitcoin. With the increase in inflation, the US Federal Reserve (FED) embarked on a drastic interest rate increase program. As we have also reported as Kriptokoin.com, it has increased by 75 basis points in the past days. This caused BTC and other risky investments to fall. If the FED’s interest rate decision changes with the measures for inflation, there is a change in the price of BTC and cryptos. However, the exact moves towards this issue, time will tell.
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