In January, following the inauguration of Donald Trump, reports emerged saying that his son, Eric Trump, confirmed that American cryptocurrencies would ultimately be exempt from capital gains tax, while cryptocurrencies that are not based in the United States would be confronted with a 30%tax.
The elimination of taxes on capital gains on cryptocurrencies based in the United States can look like a dream that has become reality for American investors, but it will not come without price. That this turns into a net negative for the global cryptography industry – well, we will just have to wait and see.
But there are flagrant red flags.
1. The markets can oscillate after confirmation.
If this new rule is really approved and come into force, prepare for market turbulence because American investors could pour non-American cryptos, take the tax stroke and rotate part of their capital in domestic options. This could increase sales pressure on global projects, especially those with significant exposure to American investors.
But that would be the least of concerns – this could have large -scale long -term consequences for the whole cryptography industry.
2. Doing this change before the sound regulations are in place could be harmful.
This elimination of crypto investment taxes could trigger an increase in the creation of new cryptocurrencies in the United States, similar to the initial offer of the supply of initial parts (ICO)-in which nearly 80% of projects had collapsed or proved to be scams in the two years. If the American government removes capital gains tax before implementing clear and solid regulations, we could see a repetition of this chaos, but on a much larger scale.
A tax on zero capital gains would almost certainly attract American retail investors who have never tried crypto, drawn by the obvious tax advantage. But if bad actors flood the space and take advantage of it, it could completely remove these newcomers from cryptography.
3. Potential precision to the global cryptography industry.
The United States can house major crypto projects such as Cardano (ADA), Solana (Sol), XRP (XRP) and Hedera (Hbar), but it was also a reproduction ground for scamsts. In 2024, the FBI even issued a warning concerning criminals creating false cryptographic tokens which imitated legitimate criminals, attacking without distrust investors.
In addition, global crypto startups can have a more difficult time to obtain funding if American venture capital companies are starting to promote local projects to maximize trials of tokens. This could drain investments in emerging markets, where crypto is often used for the financial inclusion of the real world. Such a change would also bring many American companies at home after their departure due to the heavy approach to the application of the SEC as part of the Biden administration.
Even if other countries have jumped on the train with their own zero capital gains for local cryptos, this could turn against him. The market would probably be flooded with new tokens, trading would become more fragmented and liquidity would dryly dry up for most of them. While countries like water and the Cayman islands already have no tax on capital gains on crypto, they apply it universally, not only for cryptographic tokens created locally.
Conclusion
The United States adopting this approach is likely to distort the market, encourage the creation of artificial tokens and isolate American investors in the global cryptography economy. What seems to be a tax relief now could end up killing competition, pump money in scams and harm the credibility of long -term crypto.
