The post Eric Trump Drops a Bombshell: 0% Taxes for Made in US Crypto appeared first on Coinpedia Fintech News
In an effort to prioritise crypto innovation and investment, the United States is preparing to launch a crucial tax relief policy. Reports suggest that Eric Trump, a son of US President Donald Trump, hinted at the possibility of the introduction of a zero capital gains tax policy by the newly inducted Trump administration for cryptocurrency projects. Will US-based projects and non-US-based projects equally benefit from the expected tax concession?
US-based Crypto Projects to Enjoy Zero Capital Gains Tax
As per reports, Eric asserted that US-based crypto projects, including XRP ($3.09) and HBAR ($0.33), would benefit from the zero capital gains tax policy.
Eric’s confirmation has triggered excitement in the entire cryptocurrency industry. Many crypto enthusiasts believe that the decision would make US-based crypto projects more attractive.
Will Non-US-Based Projects Receive Any Tax Relief?
The policy is less likely to provide any benefit to non-US crypto projects. According to reports, Eric highlighted that non-US crypto projects would attract a capital gains tax of 30%.
Experts believe that this sharp contrast in taxation aims to level the playing field in favour of US-based crypto projects and incentivise companies to establish operations within the country.
US-based Crypto Projects: An Overview
The total market cap of the Made in USA category now stands at $550 Billion, and its 24-hour trading volume remains at $37,474,510,450.
The category, like what the name suggests, refers to cryptos having strong connections to the US.
XRP, Solana, USDC ($1.00), Cardano, Chainlink, Avalanche, Stellar, Hedera, Sui and Polkadot are the top ten cryptocurrencies by market cap in the category.
In the last 30-days, almost all the top ten cryptos in this category have shown bullish trends. XRP has surged by 42%, Solana by 31.7%, Cardano by 12.3%, Chainlink by 8.7%, Steller by 18.5%, and Hedera by 15.1%. However, during the same period, Avalanche has slipped by 7.4%, Sui by 2.8% and Polkadot by 9.9%.
In conclusion, the Trump administration’s crypto tax policy could revolutionise the industry, creating a favorable environment for US-based projects while challenging non-US players. If implemented, this bold move may attract global crypto innovation to the US, making it a hub for blockchain advancements. This contrasting tax rates underline the government’s commitment to promoting domestic growth and innovation in the crypto sector.
