This week marked a game-changing moment for U.S.-based crypto projects, with key policy updates poised to reshape the industry:
1. Zero Capital Gains for U.S.-Based Crypto Projects
Eric Trump has confirmed a zero capital gains tax for select U.S.-based crypto projects like XRP and HBAR. This move positions the U.S. as a crypto-friendly hub, encouraging domestic innovation and investment.
Non-U.S. Projects Face 30% Tax: This stark contrast could incentivize projects to relocate to the U.S., boosting its dominance in the crypto space.
New “U.S.-Based Crypto” Category on CoinGecko: Investors should watch for this category to identify projects benefiting from favorable tax policies.
2. Ted Cruz Fights for DeFi Privacy
Senator Ted Cruz is leading the charge against the IRS’s controversial rule requiring DeFi brokers to file 1099 forms and collect user data.
Key Issues with the IRS Rule:
Labels virtually anyone handling user info as a “broker,” even in decentralized systems.
Threatens privacy and innovation by imposing centralized reporting standards on decentralized platforms.
Cruz’s Plan: Using the Congressional Review Act, he seeks to overturn the rule within 60 days.
With Republican control in Congress, this resolution has a solid chance of passing, adding to Cruz’s pro-crypto track record, including opposition to a U.S. CBDC and support for decentralized alternatives like Bitcoin.
What This Means for U.S. Crypto
Innovation Boom: Zero capital gains taxes and lighter regulations could drive more projects to launch in the U.S., fostering growth and competitiveness.
Privacy Protections: Blocking the IRS rule would preserve user anonymity and safeguard DeFi innovation.
Global Impact: Other nations may adopt similar measures to stay competitive, but for now, the U.S. is taking the lead.
Next Steps to Watch
Zero Capital Gains Implementation: If Eric Trump’s plan becomes law, expect a surge in U.S.-based crypto activity.
IRS Rule Overturned: Cruz’s efforts will likely culminate in a pivotal vote within the next two months.
The combination of tax incentives, privacy protections, and regulatory clarity could make the U.S. a global crypto powerhouse.
