Eric Trump has just flipped the world of cryptocurrency upside down with an announcement that could change the tide in the U.S. Now, he teased a new plan to wipe out capital gains taxes on cryptocurrencies American companies would make. If people invest in U.S. projects like XRP or HBAR, when they sell these digital assets for a profit, they don’t have to pay taxes. It could grow and become more popular for U.S. crypto projects.
However, this plan doesn’t extend to other crypto projects outside the U.S. If a project is based out of a different country investors are still required to pay 30% tax when they cash out their crypto gains. The difference in tax rules could drive more crypto companies to set up in the U.S. – making the country the blockchain technology and digital assets hub.
The action is part of a broader effort to make America the world leader in blockchain technology. If the U.S. does offer these tax breaks, Eric Trump, the president’s son, believes it could attract both new and existing crypto businesses from all over the world. Essentially, it’s the idea that more companies will want to be in the U.S. to take advantage of tax free status.
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Donald Trump's second son Eric Trump confirmed:
— Crypto India (@CryptooIndia) January 26, 2025
🇺🇸Made in USA crypto projects: 0% capital gains tax
🌏Offshore crypto projects serving US users: 30% capital gains tax
US-based crypto projects include: XRP, SOL, APT, SUI, DOT, TRUMP etc.
– The Street
But there are some challenges to this proposal. But critics fear removing taxes on a profitable industry could cost the U.S. tax money, which critics say could hurt government budgets. But opponents also worry that this policy will give smaller foreign companies an added tax burden that could become an added hurdle to competing.
Nevertheless, the crypto community is looking at Eric Trump’s idea. If it passes, it can help strengthen the U.S. in the global crypto market and will create a lot of jobs and stimulus the economy. It’s still a plan in its early stages, but it shows that the U.S. is serious about taking a lead in the new world of digital finance.
Also read: What Does Trump’s Executive Order Means for Solana’s Growth?
