Regulation
US Crypto Projects Unlikely To See Zero Capital Gains Tax Benefit: Experts
The crypto community is amazed by the reports of zero capital gains tax on U.S.-based crypto projects. The move comes amid Donald Trump’s decision to make crypto a national priority regarding crypto policy and regulations, starting with signing an executive order to develop the national digital asset stockpile. However, experts claim cryptocurrencies and crypto projects developed in the United States may not see zero tax benefits.
Why Is Zero Capital Gains Tax on Crypto May Not Be Possible
Dennis Porter, CEO and co-founder of Satoshi Action Fund, in an X post on January 26 said removing capital gains on crypto entirely depends on US Congress. He asserts it is highly unlikely that the US Congress will include such a proposal in a tax bill in the near term.
He added that the primary obstacle is the significant loss in government tax revenue, making the proposal look difficult to approve currently. The primary agenda for the Trump administration is tax cuts and any policy that threatens those cuts will be sidelined.
The zero income tax on crypto presents significant practical, legal, and economic challenges. The Trump administration will review the anticipated reduction in tax on US-based crypto but not vice-versa, which could be detrimental to equities, bonds, and other financial instruments.
Eric Peterson, policy director at Satoshi Action Fund, said:
Capital gain taxes on crypto is not going to 0% folks. Congress makes tax policy, not the president. Work towards attainable goals like the de minimis exemption.
Recently, John Deaton discussed the ambiguity surrounding U.S.-based cryptocurrency projects. He questioned whether projects with operations or foundations abroad, such as Solana and Tezos, would meet the requirements for tax exemptions.
The Crypto Industry Must Lobby for Meaningful Steps Forward
Dennis Porter believes the crypto industry can take meaningful steps forward to reduce tax obligations. He suggests securing a de minimis exemption of $200 for Bitcoin and other digital asset transactions.
“This proposal aligns with the existing $200 exemption for foreign currency transactions. It’s a far more attainable and reasonable goal, with minimal impact on Trump’s ability to renew his tax cuts,” he added.
Americans who live off of Bitcoin and digital assets should not have to report every small transaction, such as buying coffee, meals, or groceries, for tax purposes. This is an overly burdensome task and it’s time we pursue this simplification of the tax code.
Porter reveals that the U.S. Congress has bipartisan support for this idea and it could become a reality with de minimis exemption. In order to be successful, it must be tied to inflation and bipartisan support that balances innovation and fairness.
Crypto Market Bullish on Zero Crypto Gains Tax Proposal
The crypto market participants are bullish on the US-based crypto and likely zero tax on these crypto as the Trump administration introduces pro-crypto policy and regulations.
Eric Trump confirmed advocating for zero capital gains tax for the U.S.-based crypto projects. ‘Made In USA’ crypto such as XRP, Solana (SOL), Hedera (HBAR) and others will benefit from tax cuts. As per CoinGecko, the US-based crypto market cap is over $560 billion.
Meanwhile, Eric Trump hinted at a 30% capital gains tax on non-US crypto projects. As per experts, this sharp divide is designed to attract global crypto investments to the United States.
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The US regulators are weighing a more progressive regulatory approach for the crypto industry, influenced by President Donald Trump’s pro-crypto views. In a surprising development, Caroline Pham, the Active Chairman of the Commodity Futures Trading Commission (CFTC), has announced potential public roundtables on emerging trends, including cryptocurrencies and prediction markets.
Aligning with Trump’s progressive crypto policies, both SEC and CFTC are considering introducing crypto-friendly norms. If these regulators encourage the growth of the crypto industry, the US could potentially emerge as a global leader in the digital asset space.
CFTC To Convene Roundtables for Crypto
In an official press release, the CFTC’s acting chair, Caroline Pham, revealed her intention to convene public discussions on the promotion of innovative technologies. Reportedly, the regulator is considering organizing a series of roundtables to explore topics such as digital assets, prediction markets, as well as affiliated entities and conflicts of interest.
This comes just days after Donald Trump’s appointment of Caroline Pham as the acting Chair of the Commission. Primarily, Pham envisions focusing on innovation and modern technology that bring new opportunities to the market. She also addressed these technologies’ potential pitfalls and risks, invoking caution. Highlighting CFTC’s fundamental mission, Pham drew attention to the staff roundtables, adding,
As I have long said, the CFTC must take a forward-looking approach to shifts in market structure to ensure our markets remain vibrant and resilient while protecting all participants…A holistic approach to evolving market trends will help to establish clear rules of the road and safeguards that will promote U.S. economic growth and American competitiveness.
SEC Launches Crypto Task Force
Recently, Mark Uyeda, the Acting Chair of the US Securities and Exchange Commission (SEC), launched the Crypto Task Force, an initiative focusing on the crypto industry. Led by Commissioner Hester Peirce, the group seeks to establish a comprehensive regulatory framework for the digital asset sector.
Uyeda believes that the regulatory agency could bring better results in the market with the new task force, as he stated, “The SEC can do better.” Meanwhile, Peirce added, “This effort will succeed only if the task force has input from a broad spectrum of investors, industry players, and other stakeholders.”
Moreover, the SEC withdrew the most controversial Staff Accounting Bulletin No. 121 (SAB 121) that prevented banks from holding crypto assets. SEC’s groundbreaking move, coupled with the CFTC’s potential actions, has invoked community enthusiasm.
Donald Trump To Reform US Crypto Landscape
Donald Trump is endeavoring to transform America into a crypto capital. Fulfilling his election campaign pledges, Trump has released crypto-focused executive orders, sparking optimism within the community.
Following his inauguration, Trump signed an executive order to develop a national digital asset stockpile. The core objective of the move is to solidify the country’s position at the forefront of the global financial economy.
Further, Trump’s establishment of the White House Crypto Council has also generated significant interest. The council is expected to work with the SEC, the CFTC, and industry leaders to foster market growth.
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Ripple has secured Money Transmitter Licenses (MTLs) in New York and Texas, marking another step in its U.S. expansion.
These licenses, crucial for offering compliant cross-border payment services, strengthen Ripple’s ability to provide financial institutions and crypto businesses with faster and more efficient payment solutions.
Ripple Secures Money Transmitter Licenses in Two Key States
According to a company statement, Ripple has gained approval for Money Transmitter Licenses (MTLs) in New York and Texas. These licenses enable Ripple Payments customers to access licensed versions of its cross-border payments platform, ensuring that transactions are managed entirely by Ripple on their behalf.
Ripple stated that New York and Texas have seen growing demand for real-time global payment solutions, particularly from banks and crypto businesses. The licenses add to Ripple’s extensive regulatory compliance portfolio, including more than 55 MTLs globally, of which 33 are in the U.S. Additionally, Ripple holds a New York BitLicense and a Limited Purpose Trust Company Charter.
Joanie Xie, Ripple’s Managing Director for North America, commented, “We’re seeing more interest from financial institutions and crypto companies ready to embrace the benefits of blockchain and digital assets.”
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- Bitpanda announced it secured approval as MiCA compliant from Germany’s BaFin.
- Crypto.com revealed its full-MiCA license via X on Monday.
- Other platforms have also secured the key regulatory registration following full rollout in December 2024.
Crypto.com and Bitpanda have received approval as Markets in Crypto Assets (MiCA) licensed exchanges, according to announcements from the two companies on Monday.
The Crypto.com team said it had received the full MiCA license. This comes just days after the exchange announced it secured in-principle authorisation from the Malta financial markets regulator.
Bitpanda said in a blog post it had received approval from the German Federal Financial Supervisory Authority (BaFin).
Exchanges get MiCA nod
Approval sees the exchanges add to the growing number of crypto platforms and service providers getting a nod for expansion across the European Union. This follows the rollout of full MiCA laws across the EU at the end of 2024, with multiple exchanges among those to reveal plans for compliance.
MiCA approval allows providers to offer their products and services in the European Economic Area (EEA), a major market for crypto.
Bitpanda deputy chief executive officer Lukas Enzersdorfer-Konrad said in a statement:
“This achievement is the result of a decade of commitment to compliance and regulation. With MiCAR, we are not just meeting the industry’s highest standards, we are setting them. Our focus now is on using this licence to accelerate adoption and growth across the European market.”
Bitpanda and Crypto.com join Boerse Stuttgart Digital, MoonPay, OKX and Hidden Road on the list of crypto platforms to have received MiCA licenses.
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