Are Cryptocurrency Taxes About to Take a Wild Turn?

If Eric Trump has his way, we could see a 0% capital gains tax for U.S.-based crypto projects by 2025. For crypto investors, this is headline-grabbing.

Eric Trump has proposed a 0% capital gains tax on U.S.-based crypto projects by 2025. This could boost blockchain innovation and benefit companies like Ripple (XRP), Hedera Hashgraph (HBAR), Coinbase, and Gemini.

However, non-U.S. projects would face a 30% capital gains tax, potentially disadvantaging Binance and Ethereum Foundation. This move aims to stimulate domestic crypto growth, but it could also lead to retaliation from other nations.

Currently, crypto is taxed as property by the IRS, with short-term gains taxed at ordinary income rates (10% to 37%) and long-term gains taxed at lower rates (0%, 15%, or 20%). All transactions must be reported on Form 8949, and crypto received as payment is taxed as income.

The IRS has been ramping up efforts to crack down on crypto tax evasion, especially in 2025, with new measures like targeting high-income taxpayers and adding the 1099-DA for digital asset transactions. This is making it increasingly difficult to avoid paying crypto taxes.

A 0% capital gains tax could create loopholes and benefit larger U.S.-based projects, while smaller and international players may be left behind. This could stifle the global and diverse nature of the crypto ecosystem.

The policy may also face legal and political challenges, and its実現可能性is uncertain. It would require a strong legislative push and bipartisan support to become a reality.

For everyday traders, this proposal could significantly reduce crypto taxes, which are currently triggered by any sale, trade, or swap of tokens. These transactions are taxed at either short-term or long-term capital gains rates, which can be as high as 37%.

This proposal would eliminate capital gains tax entirely for U.S.-based crypto projects, making it a substantial boon to traders. However, it could also lead to increased market volatility with more frequent trading and speculative activity.

Due to the complexity of crypto taxes, even with a 0% proposal, it's advisable to engage the services of a crypto tax accountant. These professionals can help optimize deductions, such as tax-loss harvesting, and ensure full compliance with the latest regulations.