Zero Tax on US Crypto Project? Experts Say It's Highly Unlikely
Why Zero Capital Gains Tax on Crypto Seems Nearly Impossible The crypto community is buzzing over reports of zero capital gains tax for the US based crypto projects. US based crypto projects will enjoy zero capital gains tax. This follows Donald Trump’s decision to prioritize crypto by signing an executive order to create a national digital asset stockpile. However, according to experts, US developed cryptocurrencies and crypto projects may not enjoy tax breaks. Industry experts say zero tax benefits for crypto assets is highly unlikely due to legal and economic obstacles.Why Zero Capital Gains Tax on Crypto Sounds Impossible? Zero capital gains tax on crypto will not be so easy to attain due to likely losses in the government's potential revenue, lack of fairness with other taxed assets, and politically difficult to get ahead of all high-income investors. Chances are this will be implemented, as its decentralized nature gives regulatory challenges another layer of difficulty. This situation makes the probability of a zero capital gains tax on crypto pretty impossible.Congress Holds the Key to Crypto Tax Reform, but Change Is UnlikelySatoshi Action Fund CEO Dennis Porter, says eliminating capital gains tax on crypto is entirely up to the US Congress. In a recent post on X, Dennis Porter said “Removing capital gains on crypto entirely would require an act of Congress and is highly unlikely in the near term”. He pointed out the massive loss of government revenue which would contradict the Trump administration’s overall tax cutting agenda. Dennis Porter also stated “Right now, the top priority of the current administration is to renew the Trump-era tax cuts. Any policy that threatens those cuts will absolutely be sidelined.”Eric Peterson, policy director at Satoshi Action Fund, said:Capital gain taxes on crypto are not going to 0% folks. Congress makes tax policy, not the president. Work towards attainable goals like the de minimis exemptionCrypto Leaders Push for De Minimis Tax Exemption Despite the challenges, industry leaders are pushing for practical solutions to ease the tax burden on crypto users. Dennis Porter said the community should focus on getting a de minimis exemption—a small tax exempt threshold for daily transactions like the $200 exemption for foreign currency transactions. 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.Eric Trump support for zero capital gains taxEric Trump has confirmed his support for zero capital gains tax on U.S.-based crypto projects. Cryptocurrencies like XRP, Solana (SOL), Hedera (HBAR), and others classified as "Made in USA" could benefit from these tax cuts. According to CoinGecko, the market cap of U.S.-based crypto projects exceeds $560 billion.Meanwhile, Eric Trump hinted at a 30% capital gains tax on non-US crypto projects. According to experts, this sharp divide is designed to attract global crypto investments to the United States.