In an effort to prioritise crypto innovation and investment, the United States is preparing to launch a crucial tax relief policy. Reports suggest that Eric Trump, a son of US President Donald Trump, hinted at the possibility of the introduction of a zero capital gains tax policy by the newly inducted Trump administration for cryptocurrency projects. Will US-based projects and non-US-based projects equally benefit from the expected tax concession?
US-based Crypto Projects to Enjoy Zero Capital Gains Tax
As per reports, Eric asserted that US-based crypto projects, including XRP and HBAR, would benefit from the zero capital gains tax policy.
Eric’s confirmation has triggered excitement in the entire cryptocurrency industry. Many crypto enthusiasts believe that the decision would make US-based crypto projects more attractive.
Will Non-US-Based Projects Receive Any Tax Relief?
The policy is less likely to provide any benefit to non-US crypto projects. According to reports, Eric highlighted that non-US crypto projects would attract a capital gains tax of 30%.
Experts believe that this sharp contrast in taxation aims to level the playing field in favour of US-based crypto projects and incentivise companies to establish operations within the country.
US-based Crypto Projects: An Overview
The total market cap of the Made in USA category now stands at $550 Billion, and its 24-hour trading volume remains at $37,474,510,450.
The category, like what the name suggests, refers to cryptos having strong connections to the US.
XRP, Solana, USDC, Cardano, Chainlink, Avalanche, Stellar, Hedera, Sui and Polkadot are the top ten cryptocurrencies by market cap in the category.
In the last 30-days, almost all the top ten cryptos in this category have shown bullish trends. XRP has surged by 42%, Solana by 31.7%, Cardano by 12.3%, Chainlink by 8.7%, Steller by 18.5%, and Hedera by 15.1%. However, during the same period, Avalanche has slipped by 7.4%, Sui by 2.8% and Polkadot by 9.9%.
In conclusion, the Trump administration’s crypto tax policy could revolutionise the industry, creating a favorable environment for US-based projects while challenging non-US players. If implemented, this bold move may attract global crypto innovation to the US, making it a hub for blockchain advancements. This contrasting tax rates underline the government’s commitment to promoting domestic growth and innovation in the crypto sector.
Read the full article here
