Will Donald Trump Make Crypto Tax Free?

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

Will Trump remove capital gains on crypto?

It’s not clear whether Trump will make crypto tax-free, at least in regards 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 at the time of writing, 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 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 1% odds that the proposal goes through before June 2025.

This said, Missouri looks set to become the first state to go bullish on crypto. The state has passed legislation to eliminate state income taxes on capital gains from the sale of cryptocurrencies and stocks. The bill has passed through the Republican-led legislature and is expected to be signed into law by Governor Mike Kehoe. This policy could serve as a template for similar tax reforms in other parts of the country.

Read next: Crypto friendly states

Would Trump putting no tax on crypto be good for the market?

In theory, yes. Nobody likes paying tax, especially not on crypto as a largely unregulated market. However, Trump removing 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 Trump 0% capital gains crypto proposal?

While the idea of a 0% capital gains tax on cryptocurrency has been proposed, many key details remain unknown. As it stands, the proposal lacks specificity, leaving several important questions unanswered.

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

Current U.S. tax law differentiates between short-term capital gains (on assets held for less than a year, taxed as ordinary income) and long-term capital gains (on assets held longer than a year, taxed at a lower rate).

The proposal does not clarify whether the 0% tax rate would apply across the board or be limited to long-term gains, similar to favorable tax treatments in countries like Germany and Portugal, which only exempt long-term holdings under specific conditions.

What qualifies as an “American cryptocurrency”?

 The term “U.S.-based cryptocurrency” is ambiguous. Leading cryptocurrencies like Bitcoin and Ethereum are decentralized and not headquartered in any country. It’s unclear whether the tax break would apply to all cryptocurrencies operated by U.S.-registered entities, only to tokens issued by American projects, or perhaps based on the location of development teams, company registration, or even where the protocol’s governance is based. These distinctions are critical for determining eligibility under the policy.

Until more specifics are released, the implications of this proposed tax policy remain speculative. Investors, developers, and regulators alike are left waiting for clarity on how such a system would be implemented.

Read next: Best Crypto Friendly Banks

Will a zero capital gains tax on crypto pass Congress?

At this time, no formal legislation proposing a zero capital gains tax 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.

Read next: Trump Meme Coins

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.