Eric Trump announces plans to scrap capital gains tax on US-based cryptocurrencies, including Algorand, Cardano, Ripple, and Hedera. Experts warn this move could disadvantage non-US crypto projects with a 37% tax gap.
Eric, the son of President-elect Donald Trump, has confirmed that the capital gains tax will be eliminated on cryptocurrencies, but only those that are domiciled in the United States.
Eric Trump Announcement of Crypto Taxes
Under Trump, American cryptocurrencies such as Algorand, Cardano, Ripple, and Hedera will be tax-exempt. Shayan Salehi, a member of the World Economic Forum, contends that the action would “place non-American crypto at a -37% tax disadvantage.”
Eric Trump stated in an interview with Benzinga that he would collaborate with his father to establish the United States as a global center for cryptocurrency.
Eric also criticized SEC Chair Gary Gensler for his “holy war” against the crypto industry.
“The crypto community in America was under total attack by Gary Gensler and so many other people,” he said. “Biden was nowhere to be found. Kamala [Harris] was nowhere to be found. They didn’t understand what crypto was. And frankly, they waged holy war against the community. And then all of a sudden my father comes in.”
He then emphasized his father’s dedication to the crypto industry, emphasizing that he has been “extremely transparent” in his efforts to establish “America as the crypto capital of the world.”
Eric reiterated his father’s recommendation to “have it on the balance sheet of the US” and advocated for “sane regulation” of the industry. He also declared that he would “try and make some of it tax-free under certain parameters.”
He also emphasized the significance of DeFi, asserting that “Modern banking has left 99% of people behind.”
“It’s slow. It’s inefficient. It’s costly. And there’s nothing that’s done in modern banking that can’t be done better on blockchain. And we’re all in the crypto world. I think we’re going to do very well in the crypto world. And I think you’re going to have a great ally,” he said.
Trump’s crypto initiative, World Liberty Financial, recently spent millions of USDC on Ethereum and Chainlink, despite his intention to tax non-American cryptocurrencies.
In accordance with on-chain data from Etherscan on December 12, WLFI acquired a total of approximately 10 million USDC, which amounted to over 2,631 ETH at a price of $3,801 per ETH.
Additionally, WLFI acquired 41,335 LINK tokens for $1 million USDC, with an average price of $24.2 per LINK. In a single day following the acquisition, the price of Chainlink increased by more than 20%, reaching $26.72.