Trump’s Plan to Exempt U.S. Crypto from Capital Gains Tax Sparks Concerns
Reports claim that U.S.-based cryptocurrencies may be exempt from capital gains tax, while non-U.S. cryptocurrencies could incur a 30% tax. Key points include:
- Market turbulence is expected if the tax exemption is approved, leading U.S. investors to sell non-U.S. cryptos.
- The absence of regulations before implementing tax changes could lead to a surge in new cryptocurrencies, similar to the ICO boom of 2017, which saw high failure rates.
- Potential harm to the global crypto industry as U.S. firms may prioritize local projects for tax benefits, impacting funding for international startups.
- Concerns about an influx of scams and fake tokens, with warnings issued by the FBI regarding impersonation schemes.
- A fragmented market could result if other countries adopt similar tax policies, reducing liquidity for many tokens.
This approach risks skewing the market and harming competition, potentially driving investors away from the crypto economy.