Donald Trump has stated that he wants to make the US the crypto capital of the planet and position it as a leader for global innovation. This may include creating policies that reward crypto users with reduced tax rates in certain situations.

One potential policy, in particular, has investors buzzing: eliminating capital gains on crypto. But is it too good to be true? 

We spoke to three US crypto tax experts to find out how and when such a policy could come into effect.

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Will Trump Remove Capital Gains Tax on Crypto?

Can Trump make no tax on crypto actually happen? Well, it’s in discussion. 

“It is definitely in play,” Wesley Barton (CBP), Director of The Network Firm, a leading crypto accounting firm told Summ (formerly Crypto Tax Calculator). “Reducing or removing capital gains tax for crypto feels like one of the easiest ways Trump could appeal to retail investors and crypto-native voters.” 

Momentum is already building, with several crypto-related bills being passed in recent months. 

Signed into law on July 4, 2025, Trump’s “One Big Beautiful Bill” introduced a range of tax changes – from eliminating tax on tips and overtime to an increase in the child tax credit. The bill was initially expected to include Senator Cynthia Lummis’ proposed crypto tax package, which featured a de minimis exemption aimed at reducing capital gains taxes for everyday transactions. However, the provision failed to receive the required votes and Lummis is still working to get it passed separately. 

Even though Trump’s Big Beautiful Bill excluded any mention of crypto tax, it still remains on the administration’s radar. White House press Secretary Karoline Leavitt stated in a press conference on July 17, 2025, that “the president did signal his support for de minimis exemption for crypto and the administration continues to be in support of that." 

Just days later, on July 30, 2025, Trump’s Working Group on Digital Asset Markets released a comprehensive report on how crypto should be regulated, including crypto tax recommendations. The group urged lawmakers to modernize crypto tax rules,  reduce compliance issues, and consider treating digital assets as a new asset class subject to their own tax rules. The report also suggested the IRS should review its tax treatment of mining and staking.

What does the GENIUS Act mean for crypto taxpayers?   

Signed into law on July 18, 2025, the GENIUS Act is the first major piece of legislation focused on digital assets. The bill establishes a regulatory framework for stablecoins,  defining what qualifies as a stablecoin and creating a new legal category for them. 

So, what does this mean for crypto taxpayers? Well, not too much is changing – yet. Under GENIUS, stablecoins are still treated as property by the current IRS rules. This means that anytime you buy, sell, or redeem them, it will still create a taxable event based on your capital gains or losses.

“The Act doesn’t alter tax treatment, but it lays the groundwork for future IRS guidance – especially by making stablecoin use more mainstream and transparent,” Cody Carbone, CEO of The Digital Chamber told Summ. “There will definitely need to be new tax guidance not only on stablecoin use, but reserves as well.”

The passing of the CLARITY Act on the same day further supports the progress of providing more clarity to the tax treatment of tokens. While the GENIUS Act deals with stablecoin regulation, the CLARITY Act sets clearer definitions for digital assets – determining whether they’re treated as securities or commodities and clarifying whether the SEC or CFTC has oversight. 

Together, these laws are a step in the right direction towards legitimacy, clearer regulations, and eventually, more consistent tax guidance for the crypto industry. 

What does Lummis’ proposed digital assets tax bill include? 

On July 3, 2025, longtime Bitcoin advocate Senator Lummis introduced a crypto tax bill focused on modernizing outdated crypto tax rules. “We must change our tax code to embrace our digital economy, not burden digital asset users,” Lummis said in a press release. “My legislation ensures Americans can participate in the digital economy without inadvertent tax violations.”

Lummis’ digital asset bill includes a range of reforms designed to make crypto taxes more practical and accessible for everyday users. Here’s some of its key measures and how they might impact you as a crypto holder. 

 $300 De Minimis Capital Gains Exemption

Tired of getting taxed for buying a cup of coffee with crypto? This measure focuses on eliminating capital gains taxes on transactions under $300. Certain exceptions apply, such as receiving cash or property in exchange for the crypto. 

“[The current system] is antithetical to policymakers' desires to make the U.S. the crypto capital of the world,” said Carbone. 

“The clarity a fixed threshold brings is better than the current system, where every microtransaction requires tracking gains.” 

Extension of the Wash Sale Rule to Digital Assets

This proposal would apply the wash sale rule to crypto, closing a tax-loss harvesting loophole where investors can sell crypto at a loss and immediately buy it back to claim a deduction. 

“[It] likely wouldn’t impact most retail traders significantly,” said Carbone. “It will almost certainly be in any tax legislative package because it’s a revenue raiser for the U.S. government.”

He also said that while it may curb some tax-loss harvesting strategies, the majority of users aren’t actively exploiting these loopholes, so the impact would be marginal. 

“I’m not opposed to applying the wash sale rule to crypto,” he added. “But it should be part of a broader framework that recognizes digital assets aren’t a perfect fit for legacy rules designed for traditional securities.”

Digital Asset Mining and Staking

Under Lummis’ bill, income from digital asset mining and staking wouldn’t be taxed until the assets are sold or disposed of. Once sold, the profits would be taxed as ordinary income. This policy is being introduced to help address potential cash flow issues for crypto investors who may owe tax on assets they haven’t sold yet. 

“This is one of the most critical parts of the legislation and likely Senator Lummis’ largest tax priority, in addition to the de minimus exemption,” said Carbone. “I don’t think she would approve any amendment that struck this language. We’re going to make sure of it.”

How Should I Approach My Crypto Taxes Moving Forward?

Other than removing the DeFi tax reporting rule, no other crypto tax laws have been passed yet. This means that your tax responsibilities as a crypto user still remain the same, and you should be sure to report all of your taxable capital gains events to avoid facing a crypto tax audit. 

Seeing as policies are changing quickly under the Trump administration, it is best to keep up-to-date with the news so you are aware of your tax reporting responsibilities. You can always consult a tax professional or Summ to help understand what you need to report. 

"Despite what it is legislated, what actually ends up in IRS guidance, instructions, and forms tends to shape my opinions on how I advise clients to file,” Avery Dorland, Enrolled Agent, Smoky Mountain Tax Consulting told Summ. “How the Form 1099-DA actually gets rolled out from centralized exchanges to users for next year is the 'next big thing' I'm waiting on.” 

“The grinding process of a new law becoming policy and formal forms and instructions is a long one. So I don't even get really excited until I see draft regulations, and even then don't really start providing specific advice until something becomes a final regulation as the amount of chances for things to change along the way are too high. My clients just want to be compliant and not audited." 

Introduction of Form 1099-DA in 2026: Exchanges Report Directly To The IRS

Form 1099-DA will be introduced in 2026, and be first used for tax reporting of the 2025 financial year. Crypto brokers and exchanges in the US will now be required to report tax payers trading activity directly to the IRS. This will include gross proceeds from every disposal, cost basis, transaction dates, assets and quantities sold.

Regulatory Timeline of Form 1099-DA

• 2025 Tax Year: Brokers begin reporting gross proceeds only
• 2026 Tax Year: Full cost basis reporting requirements begin
• No Political Delays Expected: Implementation proceeds regardless of political changes

Preparing for Inevitable Compliance Requirements

Whether under current or future administrations, crypto investors must prepare for enhanced reporting. The 1099-DA represents a permanent shift toward traditional securities-style reporting for digital assets.

How Summ Prepares You for Any Political Climate

• Future-Proof Reporting: Handles current requirements and adapts to new regulations
• Cross-Platform Integration: Tracks transactions across exchanges, DeFi, and wallets for complete 1099-DA reconciliation
• Political Risk Mitigation: Maintains compliant records satisfying requirements under any administration

What will the IRS layoffs mean for crypto tax?

With reductions made to thousands of IRS staff in 2025, the crypto tax landscape and the processing of your crypto tax return may be impacted. With potential understaffing and outdated technology, taxpayers may see a delay in their tax returns – particularly those who file late or make mistakes. 

“Fewer IRS agents means enforcement may slow down in some areas, but it also increases the IRS reliance on third-party reporting,” said Barton. “Exchanges, custodians, and payment processors will probably become even more critical for data collection and enforcement.” 

Has the Trump Admin Been Positive for Crypto?

Trump’s crypto-positive stance and his desire to make the US the “crypto capital of the world” has significantly boosted crypto sentiment and accelerated regulatory momentum. 

The short-term impact is clear: once Trump was elected, crypto markets shot up in January 2025 and sent Bitcoin to an all-time high – mostly thanks to the expectation that a Trump administration would be crypto friendly. That trend has continued, with markets reacting positively to Trump’s ongoing focus on crypto legislation. 

“No question,” Barton said. “Trump is clearly positioning himself as the pro-crypto candidate.” 

To align with the “America First” policies, in April 2025, Trump’s media empire, Trump Media and Technology Group, signed a deal with crypto exchange Crypto.com to launch a number of “Made in America” themed ETFs. 

The ETFs will include US-based digital assets and securities across various industries, and are set to launch in 2025, depending on regulatory approval. In July, 2025 Trump’s Truth Social filed a registration with the SEC to launch a “Crypto Blue Chip” ETF, primarily consisting of BTC, ETH, SOL, XRP, and CRO.

That same month, Trump made crypto history by signing the GENIUS Act – the first major crypto legislation in the US. This is a major step for the regulation of stablecoins and industry experts say the new bill could quickly lead to a stablecoin boom. 

‍Trump’s “One Big, Beautiful Bill Act” could also be bullish for Bitcoin. Even though the bill cut Lummis’ crypto tax amendments, the ripple effects of broader tax cuts and bonus depreciation may help Bitcoin miners. And if government debt grows, the Fed might respond by lowering interest rates – putting more liquidity back into markets, including crypto.  

Still, the long-term impact remains uncertain. Since the beginning of the year crypto markets have experienced sharp ups and downs, as Trump’s changing tariff trade policies and fears of a potential recession cause ongoing volatility. 

What is the Strategic Bitcoin Reserve?

The Strategic Bitcoin Reserve is essentially a stockpile of Bitcoin that the government holds as a reserve asset, similar to gold. The reserve will mostly consist of Bitcoin that the government seized by law enforcement through criminal or civil proceedings, which amounted to approximately 200,000 BTC (worth $17.5 billion) as of March 2025.

“This feels more like a meme today than a reality,” said Barton. “But if the US government were to seriously accumulate Bitcoin, it would be a massive shift in the global perception of crypto as a reserve asset. Would love to see this develop more to adjust my view!”

Sources 

• Lummis Crypto Tax Reform Bill Could Transform U.S. Digital Asset Rules, Forbes, 2025, https://www.forbes.com/sites/tonyaevans/2025/07/09/lummis-crypto-tax-reform-bill-could-transform-us-digital-asset-rules/ 
• ​​Fact Sheet: President Donald J. Trump Signs GENIUS Act into Law, The Whitehouse, 2025 https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-signs-genius-act-into-law/ 
• President Trump’s One Big Beautiful Bill Is Now the Law, The Whitehouse, 2025, https://www.whitehouse.gov/articles/2025/07/president-trumps-one-big-beautiful-bill-is-now-the-law/ 
• Trump to scrap capital gains tax on payments under $600, The Street, 2025, https://www.thestreet.com/crypto/policy/white-house-confirms-trump-considering-exemption-on-capital-gain-tax 
• Lummis Unveils Digital Asset Tax Legislation, Cynthia Lummis Senator for Wyoming, 2025, https://www.lummis.senate.gov/press-releases/lummis-unveils-digital-asset-tax-legislation/ 
• How Trump's 'Big Beautiful Bill' Could Create A 'Big Beautiful Bull Run' For Bitcoin, Ethereum, XRP, Yahoo Finance, 2025, https://finance.yahoo.com/news/trumps-big-beautiful-bill-could-183131431.html 
• Ex-Facebook manager says Trump’s new bill will trigger iPhone-scale boom, The Street, 2025, https://www.thestreet.com/crypto/markets/ex-facebook-manager-says-trumps-new-bill-will-trigger-iphone-scale-boom 
• Senate Republican unveils digital assets taxation package, The Hill, 2025, https://thehill.com/policy/technology/5384081-cynthia-lummis-crypto-tax-legislation/ 
• 5 things to know as the GENIUS Act becomes law, The Hill, 2025, https://thehill.com/policy/technology/5412298-genius-act-crypto-regulation-5-things/