US Crypto Projects Get 0% Tax—How Will XRP And HBAR Benefit?

In a bullish development for the U.S. cryptocurrency sector, Eric Trump, son of President Donald Trump, has reportedly confirmed that domestic crypto projects—including prominent assets like XRP and HBAR—will soon enjoy a significant tax benefit.

According to a report by TheStreet, U.S.-based projects will be exempt from capital gains tax. This is a major contrast to non-U.S. projects, which will face a hefty 30% tax on their profits.

This tax exemption could be a major game-changer, making the U.S. more attractive to crypto developers and investors alike.

Tax-Free Advantage for U.S. Crypto Projects

The 0% capital gains tax for U.S.-based cryptocurrency projects present an unprecedented opportunity for innovation.

Domestic crypto firms like XRP, HBAR, and others will now have a distinct advantage. This will enable them to reinvest more capital into growth and development.

This is especially significant as the global crypto market continues to surge. The total cryptocurrency market cap surpassing $3 trillion as of January 2025, according to CoinMarketCap.

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The U.S. has long been a global leader in tech innovation. With this new tax policy, it aims to maintain that position in the cryptocurrency space.

The exemption promises to make it more financially viable for firms to build or relocate their operations to the U.S.

In fact, Andreessen Horowitz (a16z), one of Silicon Valley’s most influential venture capital firms, recently scaled down its operations in the UK to refocus efforts back in the U.S., driven by the pro-crypto policies of the Trump era.

30% Tax Rate for Non-U.S. Crypto Projects

While U.S.-based projects will thrive under the new tax exemption, projects outside the U.S. face a different reality.

Non-U.S. crypto firms will reportedly be subjected to a 30% capital gains tax. This could push some companies to reconsider their global strategies.

This tax disparity has the potential to shift the crypto landscape. This would encourage international projects to set up shop in the U.S. in order to benefit from the favorable tax environment.

The financial implications for non-U.S. projects could be significant. Many cryptocurrencies see their most significant growth outside the U.S. borders.

For instance, stablecoins like USDC and USDT are widely used in markets across Europe and Asia. This new tax policy could influence how these projects manage their capital and operational strategies.

More Regulatory Action for DeFi

Simultaneously, the U.S. cryptocurrency community is bracing for a battle over decentralized finance (DeFi).

Senator Ted Cruz, a vocal crypto advocate, is set to challenge a recent IRS ruling under the Congressional Review Act (CRA).

This rule mandates that certain decentralized finance brokers report transaction and user information in a way similar to traditional financial brokers.

Cruz, known for his staunch support of the crypto industry and decentralized technologies, argues that the rule will stifle innovation, infringe on user privacy, and add unnecessary complexity to tax compliance.

The CRA gives Congress a 60-day window to overturn any regulation, and with the Republican-controlled Congress, Cruz’s resolution stands a strong chance of succeeding.

This move highlights the ongoing tension between regulatory oversight and the core principles of decentralization in the crypto space. As more legislators push back against heavy-handed regulations, the crypto community is hoping for a more balanced approach that allows innovation to flourish.