#TrumpTaxCuts

**Trump Tax Cuts and Their Effect on Crypto**

The 2017 Trump tax cuts, known as the Tax Cuts and Jobs Act (TCJA), had a notable impact on the cryptocurrency market. By lowering corporate tax rates from 35% to 21%, the reforms encouraged business investment, indirectly benefiting crypto-related companies. Additionally, reduced individual tax rates allowed more disposable income to flow into alternative assets like Bitcoin and Ethereum.

However, the TCJA also eliminated like-kind exchanges (Section 1031) for cryptocurrencies, meaning traders could no longer defer capital gains taxes by swapping one crypto for another. This increased tax liabilities for frequent traders.

With Trump potentially returning to office in 2024, further tax policies could shape crypto’s future—whether through relaxed regulations or new incentives. For now, the TCJA’s legacy remains a mix of opportunity and complexity for crypto investors.