Will Donald Trump Make Crypto Tax Free? (Latest Update)

Did President Trump propose a 0% tax rate on cryptocurrency? 

Eric Trump — son of President Trump — proposed a 0% tax rate for U.S.-based cryptocurrency projects. This would likely apply to cryptocurrencies like: 

• Cardano (ADA)
• Solana (SOL)
• Algorand (ALGO)

Eliminating capital gains tax on American cryptocurrencies could incentivize companies to operate domestically and boost the American blockchain industry.  

What’s unclear about the 0% crypto capital gains tax policy? 

At this time, not much is known about the 0% capital gains tax proposal. The following questions remain unanswered: 

• Would it apply to short-term, long-term gains, or both?: At this time, not much is known about the 0% capital gains tax proposal. It’s not clear whether 0% capital gains tax would apply to all capital gains, or simply long-term capital gains (similar to how cryptocurrency is taxed in Germany and Portugal). 
• What is an American cryptocurrency?: Since Bitcoin and Ethereum are decentralized, they are not tied to any specific country. It’s uncertain how these assets would be taxed under a proposal focused on U.S.-based cryptocurrencies.

Will zero capital gains tax pass Congress? 

At this time, a zero capital gains tax on crypto has not been formally proposed in Congress. Even if introduced, the likelihood of the bill passing Congress and being signed into law remains uncertain. 

Do I still need to report my cryptocurrency taxes? 

Because this proposal has not passed into law, cryptocurrency transactions remain subject to existing tax laws. This means:

• You are still required to report your capital gains and losses.
• Crypto is subject to standard short-term (10-37%) and long-term (0-20%) capital gains tax rates.
• The IRS continues to enforce compliance, and failure to report cryptocurrency income could lead to fines, penalties, and even potential jail time. 

Is Trump crypto-friendly? 

President Trump has signaled strong support for the cryptocurrency industry. His victory in the 2024 presidential election caused a bull run in the cryptocurrency industry. 

Let’s walk through some of the president’s crypto-friendly actions: 

• Bitcoin Superpower – President Trump has vowed to make the US a ‘bitcoin superpower’. He has proposed a Bitcoin strategic reserve and called for all BTC to be mined in the US. 
• Crypto-friendly SEC: President Trump appointed Paul Atkins as the Chairman of the SEC. Atkins is widely seen as a crypto-friendly regulator. 
• Trump Memecoin ($TRUMP) – Just days before his inauguration, Trump launched his own memecoin, further cementing his association with the crypto community.

In conclusion 

While discussions around zero capital gains tax for crypto have gained traction, no official policy has been proposed. Crypto investors should stay up-to-date with legislation and continue to comply with current tax laws.