Family, the crypto world has been buzzing lately! Well-known investor Jason Calacanis suggested in a podcast to impose a 0.01% tax on every cryptocurrency transaction in the U.S., based on the value of the traded asset. Buying $1,000 worth of Bitcoin would only cost an extra $0.10, which doesn't sound like much, right? But David Sacks from the White House's crypto affairs directly criticized it, saying this tax is like a cockroach; once it's started, it becomes a big problem. He also cited the example of U.S. income tax, which initially only targeted the wealthy, but now the middle class can't escape it.

Although this 0.01% tax seems small, the impact could be significant. For quantitative firms engaged in high-frequency trading, the number of transactions daily could accumulate a substantial tax burden. Moreover, taxes must be paid with the original asset being traded; for instance, if you buy an NFT with Bitcoin, the tax must also be paid in Bitcoin, effectively shrinking your assets during a bull market. If a trading tax is actually imposed, there might even be taxes on deposits and holdings in the future. Right now, the Trump administration wants to implement zero capital gains tax on crypto, while the Democrats are eyeing transaction taxes. With such chaotic policies, how can the market remain stable?

From a market impact perspective, the likelihood of this proposal passing is low, but there's a fear that some politicians might use it to suppress crypto prices. If it does go through, centralized exchanges might subsidize users, while DEX traffic is likely to surge, putting high-frequency trading meme coins like Pepe and Dogecoin in danger. Companies like Coinbase will have to withhold taxes, but on-chain transactions are still hard to regulate.

Ultimately, this debate is a game of efficiency versus fairness. One side wants to regulate the market through taxation, while the other sees this as a means of regulatory expansion. There are quite a few crypto voters in the U.S. now; it all depends on whether politicians dare to touch this pie. We should pay more attention to Texas; they just invested $500 billion to build a Bitcoin fund, and they might lead the resistance!