TBC News

Tag: legislation

  • 8 Things You Should Know About $1,000 “Trump Accounts” for Babies Born 2025-2028

    8 Things You Should Know About $1,000 “Trump Accounts” for Babies Born 2025-2028

    A collage featuring Donald Trump holding a signed document, a hand with cash, and a sleeping baby in a fabric resembling the American flag.

    Every baby born between 2025 and 2028 is getting a financial head start thanks to a new law signed by President Donald Trump.

    These accounts aim to encourage long-term saving and build wealth from day one.

    1. Every newborn receives $1,000 for free
    Trump Accounts start with a $1,000 deposit at birth. No action is required for the baby, just a Social Security number, and the account is automatically created as seed money to encourage early saving.

    2. Parents and others can contribute up to $5,000 annually
    Beyond the initial gift, parents may contribute up to $5,000 per year until the child turns 18. Employers can add $2,500 per year, and contributions from state, local governments, or private charities are allowed. Contributions can begin in July 2026.

    3. Funds are invested in low-cost stock index funds
    Trump Account money is invested in low-cost stock index funds like the S&P 500. Experts say letting the money grow for years could yield significant compounding returns, making it a smart long-term investment strategy.

    4. Access to funds starts at age 18
    Withdrawals cannot occur until the child turns 18. At that point, the account acts like a traditional IRA, giving young adults options to pay for education, a first home, or keep the money invested for retirement.

    5. Tax rules are similar to an IRA
    Parent contributions are made with after-tax dollars, meaning withdrawals of that money are tax-free. Earnings are taxable, and early withdrawal penalties disappear at age 59½, offering flexibility for the long term.

    6. Experts weigh in on additional contributions
    While the $1,000 gift is universally seen as a win, contributing extra may not make sense for everyone. Analysts suggest 529 education savings accounts offer more flexibility and tax benefits for schooling, making Trump Accounts better for long-term retirement planning.

    7. The program encourages long-term financial literacy
    Trump Accounts give children an 18-year head start on learning about saving, investing, and compounding. Financial advisors hope it inspires families to develop good money habits early in life.

    8. The cost and controversy
    The initiative is estimated to cost $15 billion through 2034 amid a $37 trillion national debt. Some critics call it a political giveaway, while proponents argue it is a meaningful step in helping the next generation save for adulthood.

    Trump Accounts may not replace other savings plans, but every baby born during this window will get a jumpstart on financial planning and wealth building.

  • Superable: Trump’s Budget Bill Lacks Crypto Wins but Liquidity is the Real Prize

    Superable: Trump’s Budget Bill Lacks Crypto Wins but Liquidity is the Real Prize

    Cryptocurrency thought leader Ram Superable said the passage of Donald Trump’s “Big Beautiful Bill” delivered no policy breakthroughs for digital assets but sent a strong signal that liquidity, not legislation, is what matters most right now.

    “There were zero direct wins for crypto in this bill — no relief on mining taxes, no clarity on staking income, not even a hint of regulatory direction,” Superable said Friday. “But what we got instead was a surge of liquidity, and that changes everything.”

    The newly passed federal budget includes an estimated $3 trillion to $4 trillion in deficit spending, a move Superable believes will flood capital markets with cash and drive investors toward assets like Bitcoin.

    “In times of fiscal uncertainty, people naturally look for alternative stores of value,” he said. “Bitcoin and digital assets are positioned to benefit from that shift.”

    Superable pointed to the modest rise in crypto prices after the bill’s passage as a sign that the market is responding not to politics but to broader monetary conditions.

    “We’re not waiting for Washington to bless us anymore,” he said. “Crypto has evolved beyond needing government validation — we move with the macro now.”

    He said inflation expectations, liquidity cycles, and federal spending are becoming the dominant forces shaping digital asset valuations.

    “What matters now is how capital flows — and this bill just turned the taps on,” Superable said.

    Although the legislation lacked any crypto-specific provisions, Superable dismissed concerns that regulatory delays would hamper innovation in the space.

    “Policy is slow, but code moves fast,” he said. “The ecosystem is still building, still expanding, and it’s happening with or without a stamp of approval from lawmakers.”

    He acknowledged efforts by legislators like Senator Cynthia Lummis to push for crypto tax reform but said the sector isn’t waiting on Capitol Hill.

    “The next wave of development is already underway — on-chain, open-source, and global,” he said.

    Superable concluded that the bill, while imperfect for crypto advocates, serves as a powerful reminder that monetary momentum is now the market’s biggest catalyst.

    “Liquidity is the fuel,” he said. “And right now, there’s a lot of it coming.”