US-based Crypto Projects Hope for More Attractive New Tax Rates
Key Points: Eric Trump revealed plans for a zero capital gains tax on US-based crypto projects like XRP and HBAR, while non-US projects may face a 30% tax rate. Senator Ted Cruz aims to overturn an IRS rule requiring DeFi platforms to report user data, arguing it stifles innovation, breaches privacy, and burdens compliance. The United States is taking steps to reshape its cryptocurrency tax policies, aiming to bolster innovation and attract investments in US-based crypto projects. Read more: IRS Crypto Tax Rules Will Be Adjusted in 2026 US-based Crypto Projects Benefit From Tax Benefits Eric Trump, son of President Donald Trump, has hinted at a significant tax reform under consideration by the Trump administration. The proposed plan would establish a zero capital gains tax for US-based crypto projects, including notable names like XRP and HBAR. The policy shift could provide a competitive edge to domestic crypto ventures, making them more attractive to developers and investors. However, it introduces a stark contrast for non-US projects, which would face a 30% capital gains tax. Critics argue that this tax disparity could hinder global collaboration in the crypto space. Decentralized Systems at the Heart of Crypto Policy Debate Meanwhile, Senator Ted Cruz is taking a stand against a separate IRS rule targeting decentralized finance (DeFi) platforms. The rule mandates brokers, including non-custodial entities, to report user data and transaction income. Cruz argues that the regulation threatens innovation, violates privacy, and imposes unreasonable compliance burdens on DeFi platforms. Cruz, a vocal cryptocurrency supporter, views DeFi as essential to maintaining the U.S. lead in blockchain technology. He also opposes central bank digital currencies (CBDCs), favouring decentralized systems like Bitcoin. Cruz plans to invoke the Congressional Review Act to challenge the rule. This act allows Congress to overturn regulations within 60 days of their introduction. With a Republican-controlled Congress, his resolution is expected to gain momentum. DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.