Trump’s Crypto Tax Plan: Smart Policy or Risky Gamble?

Although there haven’t been any official announcements, the narrative has gained traction in the community, with many closely watching for updates. At the same time, Trump’s push to support made-in-USA products and cut taxes has been growing, and some expect this trend to extend to cryptocurrencies as well.

Popular crypto data tracking platform CoinGecko, for example, announced a new category on Trump's inauguration day: coins with American roots.

Will Made-in-US Coins Benefit from Donald Trump’s Crypto Taxation Policy?

At the end of January 2025, Eric Trump, the son of President Donald Trump, suggested that U.S.-based crypto projects like Ripple (XRP) and Hedera Hashgraph (HBAR) could be subject to 0% tax, while non-U.S.-based crypto projects might face a 30% tax rate.

There’s still a lot of uncertainty around this proposal—whether it will actually happen and if it will apply to both businesses and individuals.

Donald Trump previously commented on crypto taxation policy during his presidential run in October. In one interview, he said:

They have them paying tax on crypto, and I don’t think that’s right. Bitcoin is money, and you have to pay capital gains tax if you use it to buy a coffee? Maybe we get rid of taxes on crypto and replace it with tariffs.

This idea aligns with Trump’s broader political proposals, including one of his most radical plans: replacing the Internal Revenue Service (IRS) with an External Revenue Service. According to Commerce Secretary Howard Lutnick, the goal is simple—abolish the IRS and make outsiders pay instead.

Trump’s tariff plan suggests Americans would no longer need to pay income taxes. However, big questions remain: Can tariff revenue cover the federal budget? And will it lead to higher prices for consumers?

Crypto Taxation Uncertainty Grows After Trump’s Digital Services Tax Memorandum

Taxes on digital goods and services are another hot political topic. On February 21, Trump signed a memorandum directing trade authorities to review foreign countries’ digital service taxes.

This move could create challenges for digital goods, impacting crypto businesses and market participants alike.

Will “Trump no tax on crypto” become a reality? Based on the current landscape, a likely scenario seems to be a 0% tax for U.S.-based crypto projects and tariffs on foreign cryptocurrencies.

For investors, this might mean reassessing investment strategies and adding a new factor to consider when building a crypto portfolio—where the project is based.

Will this be a case of a smart policy or a risky gamble? That depends on whether Trump and his team can balance pro-crypto incentives with economic sustainability—and that’s far from certain.