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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 two US tax experts to find out how and when such a policy could come into effect.
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.”
In 2025, US President Trump’s son and executive vice president of the Trump Organization, Eric Trump, announced plans to make American-based cryptocurrencies exempt from tax, in an effort to boost local blockchain innovation.
The proposal would impact domestic crypto such as Ripple’s XRP, Cardano (ADA), Hedera (HBAR), and Algorand (ALGO). However, since Eric Trump isn’t an elected official, no specific details have been provided yet on how the policy would actually work, and if it would apply to only short-term capital gains or long-term capital gains, or both.
“There has also been talk about eliminating income tax entirely in favor of consumption-based models. That would be aggressive, but possible if his second term focuses on deregulation and pro-growth policies,” Barton said.
To further 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.
What hurdles exist to making crypto tax-free?
The road to making crypto entirely tax-free doesn’t come without potential challenges. It could:
- Reduce tax revenue. Removing taxes for all US-based crypto will cause a significant loss in tax revenue for the government, which will need to be made up elsewhere.
- Cause the market to dive. If US crypto becomes tax-free, investors may quickly dump their non-US coins to purchase domestic coins instead.
- Potentially cause an increase in scams. If changes are made before solid regulations are put into place, the US may experience a surge of new crypto tokens and find itself a breeding ground for scam tokens.
While the move to make crypto tax-free is still in early stages, careful discussions need to be had to address possible risks.
“The upcoming SEC crypto roundtables happening from April through June will be critical to watch,” Barton said. “These are directly focused on reviewing how digital assets are classified and taxed. If the frameworks around ‘investment contracts’ start getting rewritten, that could set the stage for major tax changes.”
What other changes to crypto tax could happen under Trump?
Since coming into office Trump has hit the ground running. In his first week he issued an executive order to establish a crypto task force. The group is responsible for proposing new crypto laws and regulations, which may also include challenging certain tax laws previously issued by the IRS.
On April 10, 2025, Trump signed H.J. Res. 25 into effect, removing the extensive tax requirements for decentralized exchanges (DEXs) – including filing a Form 1099-DA – and no longer classifying them as brokers. The resolution argues that since DeFi platforms are decentralized and do not collect the same user information as traditional securities brokers or centralized exchanges, they should not be subject to the same requirements.
This means that DeFi platforms, such as Uniswap, will now be exempt from reporting their users’ transactions. However, individual reporting requirements still remain the same.
Additional changes to crypto tax laws may be issued in 2025, we will just have to wait and see.
“I would expect simplification over complexity,” Barton told Summ.
“Higher reporting thresholds, exemptions for smaller transactions, or redefining certain tokens outside of securities law feel realistic. But it is going to depend heavily on how the SEC roundtables play out over the next few months.”
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."
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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 been positive for both crypto sentiment and changing regulations.
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.
“No question,” Barton said. “Even if there has not been direct policy yet, the narrative alone has been bullish for crypto. Markets love reduced friction, and Trump is clearly positioning himself as the pro-crypto candidate,”
However, the long-term effect is yet to be seen. Since the beginning of the year crypto markets have been in a free fall, as Trump’s changing 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
Eric Trump’s Zero Crypto Tax Policy: Bold Idea Or Dream?, Forbes, 2025
Crypto Tax Breaks: Eric Trump Confirms XRP, ADA, ALGO, and HBAR Will Be Exempt, Binance, 2024
Trump’s win ignites a crypto frenzy that sends bitcoin to a record high, AP News, 2024
Why is Trump’s election as US president prompting a Bitcoin surge?, Al Jazeera, 2024
U.S. crypto stocks slide as Trump's sweeping tariffs jolt markets, Reuters, 2025
How Trump’s Bitcoin Policies Are Making The U.S. A Crypto Superpower, Forbes, 2025
Trump signs bill to nullify expanded IRS crypto broker rule, Reuters, 2025
Why Trump’s Potential Plan to Make Crypto Gains Tax-Free Could Be a Bad Idea, CoinDesk, 2025
Trump’s Crypto Revolution: Promises Kept And Controversies Ignited, Forbes, 2025
Trump Media inks deal with Crypto.com for ‘Made in America’ ETFs, Cointelegraph, 2025
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FAQ
James Edwards has been active in the cryptocurrency industry for over 10 years. He is an avid user of DeFi and believes in the promise of a user-owned and operated web.
His expertise as a cryptocurrency journalist has seen him contribute to publications such as Nasdaq, CoinMarketCap and CoinTelegraph.
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