Over the weekend, Eric Trump made a statement confirming pro-crypto tax policy for U.S.-based crypto projects. Wrapping up a bullish week for cryptocurrency development in the U.S., Eric Trump released a statement confirming exemptions from capital gains tax. This move is aimed at fostering more onshore innovation and positioning the United States as a global leader in the blockchain and digital assets.
According to various information, Eric Trump allegedly confirmed that U.S.-based crypto projects would be exempt from capital gains tax. Moreover, a 30% capital gains tax would be levied on non-U.S.-based projects. The announcement specifically mentioned well-known projects like XRP and HBAR.
The Trump administration undertook two actions that set the tone for a more favorable regulatory environment for crypto in the U.S. A tax exemption policy can certainly be seen as yet another step towards this goal. Orchestration of crypto-friendly tax policy will require navigation of an already complex set of existing tax laws and regulations.
Ushering in crypto-friendly tax policy will require navigation of an already-complex tax system. Eric Trump’s weekend announcement of a potential capital gains tax exemption for U.S.-based crypto projects marks yet another significant development in the cryptocurrency landscape. Trump administration policy shifts make it clear the President intends to follow through on themes he presented, where he curried favor with a pro-Bitcoin and digital asset crowd. The U.S. intends to position itself as a global leader in digital asset innovation. While the policy has been met with enthusiasm from the crypto community, especially those in the U.S., successful implementation of tax and other crypto-focused policies will require careful orchestration and close scrutiny of overall market dynamics, not just those of the U.S. market.
