While the American economy falters, Donald Trump secures a strategic victory in the Senate

Behind this success looms a political confrontation with global repercussions. For investors and crypto players alike, this vote opens an uncertain sequence

The American Senate has passed a major budget resolution after a tense overnight session marked by an avalanche of amendments submitted by Democrats.

This text, which is more ideological than practical, sets the tone for a large-scale budgetary confrontation between the two camps.

However, it also signals a threat of paralysis to the federal administration if the two chambers fail to reach an agreement on the final version of the budget.

The Republican-majority American Senate adopted a major budget resolution on Saturday after a tense session that spilled over into the night as Democrats submitted a flurry of amendments.

This text, which does not constitute an official budget but rather an economic roadmap for Donald Trump’s term, was praised by Republican Senator James Lankford.

“This resolution provides strong support for the president’s major priorities,” he said, adding that it includes an increase in funds to secure the border, enhance America’s energy dominance, build a national defense, cut wasteful spending, and prevent a tax increase on families and small businesses.

On the Democratic side, the opposition was frontal. Chuck Schumer, the minority leader, denounced “a brutal pincers movement by the Republicans.”

According to him, the majority sacrificed the middle class and essential social programs to serve the president’s agenda in total submission to Donald Trump.

Concerns particularly focus on the social and fiscal consequences of the text, which could lead to cuts in food stamps, reductions in work income tax credits, and a decrease in funding for low-income housing.

This first step, although important, merely crystallizes the ideological fractures between the two camps and sets the tone for a large-scale budgetary confrontation whose concrete effects are yet to be defined.

The text voted in the Senate is, however, only half of the budgetary equation. A similar version must still be adopted by the House of Representatives. And it is here that the divergences are growing.

While the Senate is planning for about 4 billion dollars in cuts to public spending, the version pushed by some House officials displays far more radical ambitions, close to 1,500 billion dollars, in a logic of dismantling federal agencies and massively reducing state intervention.

At this stage, the two chambers seem hardly reconcilable, which signals a possible legislative deadlock. “This resolution is a fiscal shipwreck,” declares the Cato Institute, a libertarian think tank, in its analysis of the text, highlighting a major budgetary imbalance between uncertain revenues and a programmed explosion of expenditures.

Meanwhile, financial markets did not take long to react. On Wednesday, Donald Trump announced a new wave of tariffs on global imports, which immediately plunged the stock markets into the red and revived fears of a recession.

This commercial hardening, combined with uncertainty around federal budget financing, fuels a palpable nervousness on Wall Street.

On top of this is one of Trump’s major ambitions: to make the massive tax credits from 2017 permanent, a measure whose potential cost is estimated at over 4,000 billion dollars over ten years.

The implications in the short and medium term are multiple in this explosive context.

On one hand, the absence of a budget agreement could paralyze the federal administration, as has been the case several times under previous administrations.

On the other, the combination of budget deficits, fiscal uncertainties, and global trade tensions could accentuate the dedollarization observed in some emerging economies.

For crypto investors, this instability both enhances the appeal of alternative assets and increases the global volatility of the markets, a factor that will undoubtedly continue to influence the trajectory of major cryptocurrencies such as Bitcoin and Ethereum.