Under Donald Trump's administration, there's a reported plan to eliminate capital gains taxes on U.S.-issued cryptocurrencies. This initiative focuses on promoting the use of domestically produced digital assets, aiming to make the U.S. a leading hub for blockchain technology and crypto innovation:
• Exemption Details: Cryptocurrencies created by U.S.-based entities would not be subject to capital gains tax, potentially encouraging investment and use of these assets in daily transactions.
• Political Context: This proposal aligns with Trump's broader vision to leverage cryptocurrencies in economic policy, reducing tax burdens and possibly using tariffs as an alternative revenue source. However, the plan has stirred debates regarding its economic implications and fairness.
Latest Updates
• Eric Trump's Confirmation: Recently, Eric Trump confirmed that cryptocurrencies like XRP, ADA, ALGO, and HBAR would be tax-exempt under this administration's policy. This statement has fueled discussions across various platforms and media outlets.
• Market Reaction: Following these announcements, there's been a notable buzz in the crypto community, with polls and social media sentiment indicating strong support for these tax exemptions.
Cryptocurrencies Poised to Benefit
Among others, the following U.S.-based cryptocurrencies could see significant gains due to this policy:
• $XRP - Known for its use in cross-border payments, XRP's exemption could boost its adoption in financial sectors.
• $ADA - With its focus on academic research and a slow but steady approach to development, ADA could attract more investors if freed from capital gains taxes.
• $HBAR - As a platform for building decentralized applications, HBAR's growth could accelerate with tax exemptions.
With the promise of tax-free gains, investors might shift capital towards these cryptocurrencies, expecting higher returns without the tax burden.
Companies might consider moving their operations or token issuances to the U.S. to take advantage of the tax benefits.
