In an effort to prioritise crypto innovation and investment, the United States is preparing to launch a crucial tax relief policy.
Reports suggest that Eric Trump, a son of US President Donald Trump, hinted at the possibility of the introduction of a zero capital gains tax policy by the newly inducted Trump administration for cryptocurrency projects.
Will US-based projects and non-US-based projects equally benefit from the expected tax concession?

US-based Crypto Projects to Enjoy Zero Capital Gains Tax
As per reports, Eric asserted that US-based crypto projects, including XRP and HBAR, would benefit from the zero capital gains tax policy. 
Eric’s confirmation has triggered excitement in the entire cryptocurrency industry. Many crypto enthusiasts believe that the decision would make US-based crypto projects more attractive. 

Will Non-US-Based Projects Receive Any Tax Relief?
The policy is less likely to provide any benefit to non-US crypto projects. According to reports, Eric highlighted that non-US crypto projects would attract a capital gains tax of 30%. 
Experts believe that this sharp contrast in taxation aims to level the playing field in favour of US-based crypto projects and incentivise companies to establish operations within the country. 

US-based Crypto Projects: An Overview
The total market cap of the Made in USA category now stands at $550 Billion, and its 24-hour trading volume remains at $37,474,510,450. 
The category, like what the name suggests, refers to cryptos having strong connections to the US. 

XRP, Solana, USDC, Cardano, Chainlink, Avalanche, Stellar, Hedera, Sui and Polkadot are the top ten cryptocurrencies by market cap in the category. 
In the last 30-days, almost all the top ten cryptos in this category have shown bullish trends. XRP has surged by 42%, Solana by 31.7%, Cardano by 12.3%, Chainlink by 8.7%, Steller by 18.5%, and Hedera by 15.1%. However, during the same period, Avalanche has slipped by 7.4%, Sui by 2.8% and Polkadot by 9.9%. 

In conclusion, the Trump administration’s crypto tax policy could revolutionise the industry, creating a favorable environment for US-based projects while challenging non-US players. If implemented, this bold move may attract global crypto innovation to the US, making it a hub for blockchain advancements.
This contrasting tax rates underline the government’s commitment to promoting domestic growth and innovation in the crypto sector. 

#TaxFreeCrypto #TaxRates #USACryptoTrends #cryptooinsigts #CryptoNews

Based on the latest information available,
- General Tax Treatment: Cryptocurrencies are treated as property by the IRS, similar to stocks or real estate. This means transactions involving cryptocurrencies are subject to capital gains tax when sold at a profit or income tax when earned as income.
- Capital Gains Tax: When you sell, trade, or dispose of cryptocurrency for a profit, you're subject to capital gains tax. The rate depends on the holding period:
- Short-term Capital Gains: If you held the cryptocurrency for less than a year, gains are taxed at your ordinary income tax rate, which can range from 10% to 37% for 2025.
- Long-term Capital Gains: If held for over a year, the tax rate is generally lower, at 0%, 15%, or 20%, based on your income level.
- Income Tax: Earning cryptocurrency through activities like mining, staking, airdrops, or receiving it as payment for goods or services is considered taxable income. You'll pay tax on the fair market value of the cryptocurrency on the day you receive it, at your marginal income tax rate.
- Reporting Requirements: Starting in 2025, cryptocurrency exchanges will be required to report certain transactions to the IRS using Form 1099-DA, which will detail capital gains and losses. Until then, taxpayers are responsible for accurately reporting their crypto transactions.
- Taxable Events: Selling crypto for fiat, trading one crypto for another, or using crypto to purchase goods or services are all taxable events. Even if you don't receive fiat, the transaction is considered as if you sold the crypto for its fair market value in USD at the time of the transaction.
- Non-Taxable Events: Simply holding or transferring cryptocurrency between your own wallets is not a taxable event. However, detailed record-keeping is necessary for accurate tax reporting.
- Deductions and Losses: You can offset gains with losses through tax-loss harvesting, with a maximum deduction of $3,000 per year. Long-term holding can qualify for lower tax rates.
- Future Changes: The IRS has been actively refining its approach to cryptocurrency taxation. For instance, there's a transition to wallet-by-wallet tracking of cost basis starting January 1, 2025, to simplify tracking as cryptocurrencies move between wallets.
For the most accurate and detailed advice, especially given the evolving nature of these laws, it's advisable to consult with a tax professional who specializes in cryptocurrency or use specialized tax software like TokenTax or Koinly, which can help with calculations and reporting.
#TaxFreeCrypto