Donald Trump to Scrap Crypto Gain Taxes on US-Issued Cryptos?

President Donald Trump is reportedly planning to scrap all capital gains taxes on cryptocurrencies issued by US companies.

According to sources close to the matter, eliminating the capital gains tax would make all profits Americans earn on holding crypto assets such as Cardano ($ADA), Algorand ($ALGO), Ripple ($XRP), and Hedera ($HBAR) fully tax-free, as these assets are created by U.S. companies.

🚨BREAKING: President Trump wants to eliminate all capital gains taxes on Cryptocurrencies issued by U.S. companies

This would ultimately make all profits Americans make on holding crypto assets such as $ADA $ALGO $XRP and $HBAR fully tax free, as their creators are U.S.… pic.twitter.com/DCtG14S6kJ

— Shawn (@oroogle) November 14, 2024

A source, who is a member of Donald Trump’s transition team, claims the legislation will require companies to be registered as entities in the United States before issuing crypto assets. However, there will be a pathway for businesses with existing crypto assets on the market to relocate to the United States.

Among the many crypto-friendly reforms promised by Trump during his campaign, one goal was to make America the “crypto capital of the world,” and this strategy is part of that vision.

It’s worth noting that if this speculation turns out to be accurate and the 37% tax on crypto gains is eliminated, it could significantly transform the crypto industry, as investors would likely flock to the space to trade crypto without facing taxes on profits.

Donald Trump’s victory has already led to a surge in the crypto industry, prompting other nations to strengthen their crypto regulatory stance as well. With the removal of crypto gains tax and the resulting increase in crypto adoption, crypto companies may consider setting up their businesses in the US. This shift could pressure other countries to enhance their own crypto regulations to counter the growing appeal of the US market.

The competition to attract the crypto industry has already begun, as the UK government is preparing to announce its plan to regulate the crypto sector this month. The UK is seizing this opportunity to counter the appeal of the US and reassure businesses about the prospects within the UK.

Also Read: Lutnick vs Bessent Fight for Trump’s Treasury