Will Trump’s Crypto Policies Lead to Tax Relief for Crypto Investors?

The prospect of U.S.-based crypto projects enjoying zero capital gains tax has stirred conversation, especially following President Trump's efforts to make digital assets a national priority.

While this might sound promising for the industry, experts believe there are major hurdles that could block its realization.

Will Crypto Projects Benefit from Zero Tax Relief?

Dennis Porter, CEO of Satoshi Action Fund, explained that any such change would need Congressional approval. Given the revenue loss it would cause, this proposal faces significant opposition, and Porter doesn’t foresee it happening soon. He suggests that while a full tax cut seems far-fetched, more attainable options like a de minimis exemption for small transactions could provide relief without disrupting fiscal policy.

Porter emphasized that this would be a more feasible approach, allowing minor crypto transactions—like buying everyday items—to remain tax-free, which could encourage broader crypto adoption without the burden of extensive reporting.

International Projects and U.S. Tax Exemption

A complicated issue arises with crypto projects based outside the U.S., such as Solana and Tezos, which could struggle to qualify for tax exemptions. This creates uncertainty for projects with international foundations, leaving the regulatory framework for foreign-based cryptos unclear at best.

A New Approach for Crypto Taxation

Instead of focusing on unrealistic tax relief, industry experts are advocating for smaller, more practical goals, such as the de minimis exemption. This would provide a more reasonable path forward, benefiting both users and the industry at large without disrupting the broader financial landscape.

Optimism and Strategic Shifts for U.S. Crypto

Despite the challenges, there is optimism within the crypto space, especially as President Trump’s administration continues to push for policies that could position the U.S. as a leader in digital asset adoption. Eric Trump has supported these initiatives, noting the benefits for U.S.-based projects. While non-American crypto might face higher taxes, the hope is that the U.S. can attract more international crypto investment through favorable policies, ultimately strengthening its dominance in the global market.