What is Trump's Crypto Tax Plan?

Trump has been hailed as a crypto-friendly president after rumours he'll remove capital gains tax from crypto, but will Trump make crypto tax-free... and when?

Will Trump remove capital gains tax on crypto?

It’s not clear whether Trump will make crypto tax-free, at least in regard to capital gains tax. It’s also not clear whether this would apply to short and long-term gains, whether it would apply at a state or Federal level, and indeed, which cryptocurrencies might be tax-free.

In other words, it’s all mostly speculation and rumours, which all came about following a proposal from the president’s son, Eric Trump.

Read next: Crypto Taxes Guide

What did Eric Trump propose for capital gains tax on crypto?

Back in January 2025, Eric Trump proposed a tax exemption for cryptocurrency projects based in the US. This policy would potentially apply to digital assets such as:

• Cardano (ADA)

• Solana (SOL)

• Algorand (ALGO)

The proposal aims to encourage companies to remain onshore and strengthen the American blockchain sector.

When will Trump make crypto tax-free?

Your guess is as good as ours. Polymarket crypto prediction market currently has it at less than a less than 10% chance that Trump enacts a crypto tax exemption before 2026.

All this said, Missouri is the first state to enact similar legislation, as it recently exempted all capital gains from state taxes, making it one of the most crypto-friendly states.

What's in the White House Digital Assets Report?

Lots, but on tax specifically:

• No proposal to make crypto tax-free. The report does not recommend eliminating taxes on crypto transactions or gains.

• Acknowledges major tax uncertainty. It says existing IRS rules are often unclear or outdated for digital assets, especially around classification and taxable events.

• Calls for clearer IRS guidance. Treasury and the IRS are encouraged to clarify how crypto is taxed in areas such as staking rewards and wrapping.

• Suggests Congress consider targeted tax legislation. This includes defining digital assets as a distinct asset class for tax purposes and clarifying tax treatment for stablecoins, lending, and more.

Overall, the report focuses on tax clarity, not cuts.

Is Trump making crypto tax-free bullish?

In theory, yes. Nobody likes paying tax, especially not on crypto as a largely unregulated market. However, Trump's removal of tax on crypto may have unintended consequences, including:

• Market volatility: The policy could trigger volatility by incentivizing investors to shift capital from global crypto assets to U.S.-linked projects.

• Regulatory risks: Without clear regulatory safeguards, a 0% tax policy might lead to a surge in low-quality or fraudulent tokens, similar to the ICO bubble in 2017.

• Global industry implications: The tax advantage could marginalize non-U.S. crypto initiatives and potentially encourage other countries to introduce similar competitive measures, fragmenting the global crypto landscape.

What’s unclear about the no tax on crypto Trump proposal?

The idea of a 0% capital gains tax on cryptocurrency has been floated, but key details are missing. As it stands, the proposal is vague and leaves several major questions unanswered.

Would the 0% rate apply to short-term, long-term gains, or both?

U.S. tax law currently treats short-term and long-term capital gains differently. Assets held for under a year are taxed as ordinary income, while long-term gains receive lower rates.

The proposal does not say whether a 0% tax would apply to both, or only to long-term holdings. In other countries that offer crypto tax exemptions, such as Germany and Portugal, favorable treatment is typically limited to long-term holdings under specific conditions.

What qualifies as an “American cryptocurrency”?

The term “U.S.-based cryptocurrency” is unclear. Major assets like Bitcoin and Ethereum are decentralized and not tied to any country.

It’s unknown whether the exemption would apply to:

• tokens issued by U.S.-registered companies

• projects developed primarily in the U.S.

• protocols governed by U.S.-based entities

• or some other definition entirely

How this is defined would determine which assets qualify for the tax break. Until more details are released, the real impact for investors is unknown.

Read next: Best Crypto Friendly Banks

Will a crypto capital gains tax exemption pass Congress?

At this time, no formal legislation proposing a capital gains tax exemption on cryptocurrency has been introduced in Congress. Even if such a proposal were submitted, its prospects for passing both chambers and becoming law remain uncertain.

Do I still need to report my crypto taxes?

Yes. Since the proposal to remove capital gains from crypto has not been enacted into law or even into draft legislation for Congress, the existing crypto tax guidance applies. This means:

• You are required to report all capital gains and losses from crypto activity.

• Gains from crypto are taxed at up to 37% for short-term gains and up to 28% for long-term gains. 

• Income from crypto is also taxable.

Is Trump crypto-friendly?

President Trump has expressed strong support for the cryptocurrency industry, and his recent election win sparked a significant bull run in crypto markets. A few of his notable pro-crypto actions include:

• Bitcoin superpower vision: Trump has pledged to make the United States a global leader in Bitcoin. His proposals include creating a national Bitcoin strategic reserve and growing Bitcoin mining in the US with more favourable regulations.

• Digital asset stockpile: Alongside the Bitcoin Reserve, Trump’s executive order establishes a U.S. Digital Asset Stockpile, consisting of digital assets other than bitcoin owned by the Department of the Treasury that were forfeited in criminal or civil asset forfeiture proceedings. 

• Crypto-friendly SEC leadership: He appointed Paul Atkins as Chairman of the SEC, an appointee widely viewed as supportive of digital assets and favorable crypto regulation.

• Launch of $TRUMP memecoin: Just days before his inauguration, Trump released his own memecoin, $TRUMP.

Stay ahead of crypto tax with Koinly

Crypto may well become tax-free (in some instances) in the near future. But in the meantime, stay on top of your crypto tax obligations with a crypto tax calculator like Koinly. Koinly can help you track your gains, losses, income, and more to make sure you’re compliant with the current crypto tax regulations.