4E Insights: Understanding the "Great Beauty Act" in One Article

I. Bill Overview

The One Big Beautiful Bill Act (OBBBA) is a comprehensive budget bill promoted by Trump in 2025, covering multiple areas such as taxation, defense, energy, immigration, AI, and the Web3 digital economy. This is not only an important policy vehicle for his "Make America Great Again" strategy but will also have a profound impact on various industries.

The bill was passed in the House of Representatives on May 22, 2025, with a vote of 215-214, and later approved in the Senate on July 1 with a vote of 51-50. Trump officially signed it into law on July 4, 2025 (Independence Day), which is highly symbolic and significant.

II. In-Depth Breakdown of Core Content

The bill is mainly divided into six major sections, each carrying policy directions and business expectations:

1. Manufacturing Reshoring and Tax Incentives
   Continuing the "re-industrialization" strategy: providing up to 10 years of corporate income tax relief for companies bringing production lines back to the U.S. Key sectors (semiconductors, new energy, high-end manufacturing) can also receive over $400 billion in fiscal subsidies, and government procurement will prioritize domestically manufactured products.

2. Immigration System Reform and Border Upgrades
   Introducing technological measures such as the "digital border wall" to strengthen border enforcement, limiting the number of H-1B work visas, and setting higher thresholds. At the same time, there will be more interstate restrictions on undocumented immigrants, highlighting a hardline stance on immigration.

3. Energy Independence and "Freedom Energy Policy"
   Hot topics include the relaxation of shale oil and gas approvals, expansion of natural gas export reserves, a series of energy incentives such as substantial new energy tax offsets, and requirements for public facilities' energy self-sufficiency, balancing traditional and green energy paths.

4. AI Regulation and "Trustworthy Model Guidelines"
   Establishing an AI model registration mechanism and a national AI ethics committee, prohibiting unauthorized sensitive AI applications, and implementing an "automation replacement tax" to drive technological dividends back to society.

5. Support for Web3 and the Digital Economy
   Rarely clear blockchain policies:

• Compliant stablecoins will be regulated by both the Treasury and the CFTC;

• The national digital dollar pilot program is officially launched;

• DAOs receive their first legal recognition;

• NFT, GameFi, and on-chain income will be included in the capital gains/mixed income tax system.

1. Infrastructure and Educational Technology Investment
   Establishing an efficient infrastructure upgrade fund; launching re-employment Web3 and AI training programs; promoting rural internet coverage and K12 AI education, reflecting a flexible compromise on Democratic issues.

III. Positive Signals of the One Big Beautiful Bill for Web3 and the Crypto Market

1. Regulatory Pathway Clearly Defined, Paving the Way for Stablecoin Legalization
   The establishment of a compliant stablecoin issuance system changes the previous "gray market" situation. Stablecoins that meet transparency, reserve, and audit requirements can enter payment and cross-border scenarios. After July 5, stablecoins pegged to the dollar, such as USDC, have seen a surge in funding.

2. DAO Receives Federal Recognition, Establishing a Systemic Foundation for On-Chain Autonomy
   DAOs are defined as "digital cooperatives," required to disclose governance structures, financials, and proposal records, and implement community profit or public welfare classifications, compliant with IRS registration systems. This gives on-chain autonomous projects a formal identity, lowering the threshold for institutional collaboration and capital introduction.

3. On-Chain Asset Taxation System Takes Shape, Promoting Compliant Development of NFTs and GameFi

• High-value NFT sales trigger quarterly tax reporting;

• GameFi earnings are recognized as labor income by the tax bureau;

• Staking earnings will be subject to tiered taxation.
  Although this increases operational costs, it establishes a compliant framework for long-term stable growth.

1. Digital Dollar Creates a Preliminary Ecosystem for Coexistence of Public Chains and Central Banks
   The establishment of a swap mechanism between the digital dollar and compliant stablecoins is an important step for crypto assets to gain official endorsement. The integration of smart contracts and wallet cross-chain connections also allows digital assets to closely merge with the traditional financial system.

With these supporting provisions, Web3 and crypto assets have fully entered the national strategic vision for the first time, providing solid support for the scaled and institutional development of the industry.

IV. Future Outlook and Potential Risks

• Mainstream Capital is About to Enter: a16z, Paradigm, and Binance Labs have all announced compliance roadmaps, with stablecoin systems and compliant chain projects becoming key focuses for institutional allocations.

• Economic Policy Disruption Risks Persist: The bill increases the burden of national debt and inflation pressure, which may drag down traditional consumption capacity. The perpetualization of debt further increases macro variability.

• Regulatory Details Still Await Implementation: DAO real-name systems, NFT tax standards, etc., still rely on regulatory advancement, and future fluctuations may decrease as regulation matures.

• Industry Institutional Transformation is a Long-Term Trend: Although initial complexity rises, projects with complete governance structures and compliant on-chain operations will enjoy policy dividends, making scenarios like cross-border payments and financial applications more feasible.

4E Conclusion

The One Big Beautiful Bill is not a sector-specific bill but a comprehensive policy combination aimed at the U.S. economic structure. The Web3 and crypto provisions it proposes, while not core sections, hold pioneering significance—marking the first time digital assets are included in the national governance system. This opens institutional windows for stablecoin legalization, compliant DAO operations, on-chain income systems, and digital dollar pilots, signifying a critical turning point for crypto industry policies.

For the Web3 and crypto fields, the main opportunities ahead lie in three pathways:

1. Compliant stablecoins and their payment and settlement ecosystems;

2. Institutional growth of quality DAOs and on-chain autonomous organizations;

3. Cooperative consensus between stable digital assets and the central banking system.

As long as subsequent details are gradually implemented and resonate with the industry, the Web3 ecosystem will usher in a new era of scaled development under policy protection.

About 4E

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