Trump Proposes Ending Crypto Taxes to Boost U.S.-Made Tokens and Blockchain Innovation Efforts

The "zero crypto tax" plan needs Congress approval, Trump can't enforce it alone.

Since the beginning of the 2024 U.S. presidential election campaign, President Donald Trump has made a complete U-turn in his approach to crypto. Recently, he hinted there might be “No Capital Gains Tax on Crypto made in the U.S.” With Bitcoin already nearing its ATH price, investors are now eyeing American-made tokens.

But is this a serious policy plan? Let’s take a closer look at what’s real and what’s not.

Trump Wants to Cut Off Crypto Taxes

Back in 2019, Trump openly criticized Bitcoin, calling it “based on thin air.” But things have taken a sharp turn. Now, he’s positioning himself as a pro-crypto leader, with the goal of turning the U.S. into a Crypto capital for blockchain innovation.

Throughout his campaign, Trump has repeatedly stated his intention to introduce a "no capital gains tax" policy for cryptocurrencies. This claim has been met with skepticism from some, who highlight the fact that Trump can’t enforce such a plan alone; eliminating capital gains tax would require approval from Congress, and even if Republicans take control, not everyone is on board.

Many lawmakers are worried about losing federal revenue from crypto taxes, which currently bring in billions.

Another challenge is the lack of clarity. What exactly does “U.S.-made” crypto mean? Does it depend on where the company is based, where the blockchain is hosted, or the citizenship of the developers? Without clear definitions, it could make the rule hard to follow.

Some Experts Believe It’s Possible

Even though the idea sounds far-fetched, some experts do believe Trump is serious. According to Daniel Lessnau, a tax expert at Lessnau and Lessnau, there’s about a 40–50% chance that a version of this plan could pass. If it does, it may only apply to long-term crypto gains.

"It would be a very common administration proposal to try to reduce capital gains rates or create some exemption to encourage investment in the 'national interest,' usually defined as jobs or some other economic goal," Lessnau explained.

This isn’t just about taxes. Trump’s plan may also be about pivoting the U.S. to remain competitive with China, which is rapidly advancing in blockchain technology.

While Trump’s “zero crypto tax” promise has made waves in the crypto world, it’s important to note that right now, it’s not a real policy, just an idea. Only time will tell if this optimistic vision can be realized.