YEREVAN (CoinChapter.com) – On Dec 20, the US Senate unveiled the content of the 4,000-page-long federal spending bill for the 2023 fiscal year. The Senate will vote first to approve the deal and send it to the House of Representatives before Dec 23.

What does the $1.7T bill entail?

In detail, the bill outlined $772.5 billion for non-defense discretionary programs and $858 billion in defense funding, a 6% and 10% increase, respectively. Additionally, the Senate included $45 billion for Ukraine relief, targeted for defense spending, military training, and humanitarian purposes.

Libby Cantrill, the head of public policy at Investment Management firm PIMCO, asserted that the bill would “likely pass” before the weekend as it had considerable bipartisan support among Senate members.

The official also added that some important issues did NOT make it to the bill. For example, the Enhanced child tax credit was in effect last year after the Democrats’ $1.9 trillion American Rescue Plan.

Also read: Retail Traders are Getting Pounded

The Twitterverse is divided over the issue

Meanwhile, the spending bill stirred heated debate on public forums. Elon Musk, the CEO of Twitter and Tesla, did not support or oppose the bill but encouraged his followers to voice their opinion.

David Gokhshtein, the founder of Gokhshtein Media, commented simply that the government should “stop printing money.” Some users called it a “bullsh*t bill that scr*ws the American people.” Musk also posted a poll on his page and got an overwhelming “NO” on whether the users approved the federal spending plans.

I’m in favor of a small spending bill to keep things running, but common sense suggests that it be the least amount required through the holidays. Railroading through a giant spending bill that almost no one has read is unlikely to be in the best interests of the people.

further commented Musk.

While it is unclear whether Senators approving the bill have read the whole 4,000 pages of it, what are the implications for the crypto market?

The Crypto market might benefit from the federal spending bill

Bills like the current Omnibus bill are considered “must-pass legislation” to continue funding the government. Thus, even if the public is not pleased with the lawmaker’s decision, the bill will likely head for the House before Dec 23. However, the outcome for the crypto market is not set in stone.

Many investors might see the Omnibus spending bill as reckless, given the runaway inflation. In that case, Bitcoin and the crypto field might once more assume a sanctuary role for those investors to hedge their assets from the system they no longer trust.

Bitcoin was initially created as a decentralized alternative to the ‘bought-and-sold’ fiat economy. The previous year’s inflow of institutional funds ensured a correlation between Bitcoin and risk-on assets. However, the “digital gold” narrative might return.

Additionally, the demand for crypto regulation came to the forefront after the scandalous FTX implosion early in November. The heightened attention might spur more action in the sector and help establish a regulatory frame.

Also read: Bitcoin Price Eyes Crash Toward $15K in Early 2023

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The post US Senate Close to Passing $1.7T Spending Bill — What Does It Mean for Crypto? appeared first on CoinChapter.

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Filed under: Bitcoin - @ December 22, 2022 3:21 pm