US-based Crypto Projects to Gain Tax Advantage as Senator Cruz Targets IRS DeFi Rule
According to recent reports, Eric Trump, the son of President Donald Trump, may propose a 0% capital gains tax policy for US-based crypto projects under the Trump administration.
| Key Takeaways: – US-based crypto projects, including XRP and Hedera, will benefit from zero capital gains tax, while non-U.S. projects face a 30% tax rate. – Sen. Ted Cruz plans to overturn an IRS regulation requiring DeFi brokers to report user data. |
Eric Trump has announced that US-based crypto projects will benefit from zero capital gains tax, providing a significant advantage over international projects, which will face a 30% tax rate.
Experts suggest this sharp tax disparity is intended to bolster the competitiveness of US-based crypto projects and encourage companies to establish operations domestically. Cryptocurrencies with strong U.S. ties, such as XRP, Solana, HBAR and Cardano, fall under this favourable tax framework.
Meanwhile, Sen. Ted Cruz is preparing to challenge a recently finalized Internal Revenue Service (IRS) rule targeting the decentralized finance (DeFi) sector.
Cruz plans to introduce a Congressional Review Act resolution next week to overturn the regulation, which mandates certain DeFi brokers to report gross proceeds and user information, including names and addresses. Critics argue that the rule, finalized in December, could stifle innovation, compromise user privacy, and impose excessive compliance burdens on the decentralized crypto space.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
