Trump Vows to Scrap Crypto Taxes on U.S. Assets

 
Ritu Lavania
Written By 
Ritu Lavania
November 14, 2024

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.

A source, who is a member of Donald Trump’s transition team, claims the legislation will require companies to be ed 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.

See more
Ritu Lavania
Written by Ritu Lavania

Ritu Lavania is a versatile Web3 content creator with over three years of experience in the crypto space. She is part of the team at CryptoNewsZ, where she writes insightful and engaging content. She has also contributed to TheCryptoTimes and The Coin Edition, where her work has been well received by the crypto community. Skilled in research, creative writing, SEO, and cross-functional collaboration, she creates content tailored to diverse audiences. ionate about education, she dedicates time to teaching kids and expressing herself through poetry. Always eager to learn, she continuously explores new trends in blockchain and digital assets. She believes in the power of storytelling to make complex crypto topics more accessible and engaging for readers worldwide.