In a bold move to strengthen the U.S. cryptocurrency sector, Eric Trump has unveiled plans to exempt domestic cryptocurrencies from capital gains taxes, as reported by Wu Blockchain. This initiative aims to cement America’s position as a global leader in blockchain innovation and adoption, with projects like Ripple’s XRP, Cardano (ADA), Hedera (HBAR), and Algorand (ALGO) poised to reap significant benefits.
According to The Street, Trump's second son Eric Trump has confirmed that US-based crypto projects such as XRP and HBAR will soon benefit from zero capital gains tax instead of 30% capital gains tax. In addition, Senator Ted Cruz plans to overturn a controversial IRS regulation…
— Wu Blockchain (@WuBlockchain) January 26, 2025
Eric Trump emphasized the administration’s commitment to fostering a crypto-friendly environment, stating, “I think America will be the crypto capital of the world. I fully support it. My father fully supports it.”
XRP’s Competitive Edge
Ripple’s XRP, a prominent U.S.-based crypto project, stands to gain the most from this tax policy. The removal of capital gains taxes on domestic cryptocurrencies provides XRP holders with an attractive incentive, allowing them to realize profits tax-free. Such advantages are likely to boost investor interest, increase demand, and elevate XRP’s market valuation.
Furthermore, Ripple’s rumored inclusion in discussions for a potential U.S. national crypto reserve underscores the project’s growing influence. This development could enhance XRP’s utility while solidifying its role in advancing American crypto innovation.
Impacts on International Crypto Projects
While U.S.-based cryptocurrencies benefit, international projects may face challenges. Non-American crypto assets could encounter tax rates of up to 37%, potentially discouraging their competitiveness in the U.S. market. This tax disparity may incentivize foreign crypto ventures to establish operations domestically to access favorable tax policies.
Legislative Moves to Overhaul Crypto Regulations
Alongside these tax reforms, Senator Ted Cruz has reintroduced legislation to repeal strict reporting requirements from the 2021 infrastructure bill. The current IRS rule classifies non-custodial platforms as “brokers,” imposing heavy compliance burdens and raising privacy concerns.
Also Read: Cardano and Dogecoin Set for Major Gains Amid Trump Presidency: February 2025 Forecast
While proponents hail these measures as a catalyst for domestic innovation, critics warn of market distortions and ethical concerns over favoring U.S. projects. As these policies evolve, the global cryptocurrency landscape could shift dramatically, with Ripple’s XRP positioned as a key player in America’s crypto ecosystem.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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