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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Cryptocurrency investors in Japan are bracing for impact following a plan to reclassify digital assets as financial products. While the plan has elicited excitement from cryptocurrency enthusiasts in the Far East, the ambitious plan will have to scale several legislative hurdles.
Japan Targets Reclassification Of Cryptocurrencies As Financial Products
According to a report by Nikkei, Japan’s Financial Services Agency (FSA) is inching toward classifying cryptocurrencies as financial products. Per the report, the FSA intends to achieve the reclassification via an amendment to the Financial Instruments and Exchange Act.
Currently, digital assets in Japan are considered crypto assets conferred with property rights and seen as payment means. Under the FSA’s plans, cryptocurrencies in Japan will be treated as financial products in the same manner as traditional financial products.
The FSA says it will adopt a slow and steady approach toward the reclassification, carrying out “a private expert study group” to test the waters. If everything goes according to plan, the FSA will submit the amended bill to Parliament in early 2026.
The classification of cryptocurrencies as financial products will have far-reaching consequences for the local ecosystem. Experts say treating cryptocurrencies as financial products will bring Japan closer to a crypto ETF launch amid a changing regulatory landscape.
Furthermore, the move may lower current cryptocurrency taxation for local investors since existing capital market rules will apply to the asset class.
A Fresh Bill For Crypto Insider Trading Is Underway
Apart from the reclassification, the FSA disclosed plans for new legislation against insider trading. The move flows treating cryptocurrencies as financial products and will strengthen existing investor protection rules.
“It is a direction to establish a new insider trading regulation that prohibits trading based on unpublished internal information,” said the FSA. “We will develop laws to prevent unfair transactions.”
However, Japan’s cryptocurrency scene is heating up to a boil, driven by local and international players. Last week, stablecoin issuer Circle secured approval from the FSA for USDC with top exchanges set to list the stablecoin.
Japan’s Metaplanet has tapped Eric Trump to join its Strategic Board of Advisors as it continues to load up Bitcoin.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
In what is being dubbed a major development in the crypto regulation space, the Governor of the US state of Kentucky, Andy Beshear, has signed the ‘Bitcoin Rights’ bill into law. The law promises to safeguard protections for Bitcoin (BTC) users.
Bitcoin Rights Bill Comes Into Effect
Crypto regulations continue to evolve under pro-crypto US President Donald Trump’s administration. In the latest development, Kentucky has become the newest state to enshrine protections for digital asset users.
In an X post published on March 24, crypto advocacy group Satoshi Action Fund announced that Governor Beshear had signed the much-anticipated Bitcoin Rights bill into law. The post stated:
The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.
The bill was first introduced to the Kentucky House by Rep. Adam Bowling on February 19. According to the bill’s description, it seeks to safeguard users’ rights to use digital assets and self-custody wallets. Additionally, it aims to prohibit local zoning changes that discriminate against crypto mining operations.
The legislation outlines guidelines for running a digital asset node and excludes digital asset mining from money transmitter license requirements. It also clarifies that crypto mining or staking is not considered an offer or sale of securities.
On February 28, the bill passed Kentucky’s House of Representatives with a unanimous vote of all 91 representatives in favor. It later passed the Kentucky Senate on March 13, receiving backing from all 37 senators.
Kentucky’s proactive stance toward cryptocurrencies isn’t new. Earlier this year, the state became the 16th US state to introduce legislation seeking to create a Bitcoin strategic reserve.
Meanwhile, neighboring state Arizona is also joining the crypto movement. A recent X post by Bitcoin Laws revealed that Arizona’s House Rules Committee has passed two Bitcoin reserve bills — SB1373 and SB1025. These bills will now head to a full floor vote.
Renewed Optimism Under Trump Administration
Following Trump’s victory in the November presidential election, cryptocurrency regulations in the US are evolving rapidly, with many states introducing legislation aimed at strengthening their digital asset ecosystems and attracting crypto businesses.
Positive changes in crypto regulations are encouraging industry businesses to expand. For instance, leading crypto trading platform Coinbase recently announced plans to hire 1,000 employees in the US.
The Trump administration has also witnessed several lawsuits being dropped against major crypto entities, including Kraken, Coinbase, Gemini, and others. At press time, Bitcoin trades at $87,399, down 0.2% in the past 24 hours.
Featured Image from Unsplash.com, chart from TradingView.com
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Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.
US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges
The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.
Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.
Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.
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Kelvin Munene Murithi
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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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