Zero Crypto Taxes? Dream On, Say Experts (And Congress)

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Ah, the crypto world—where dreams of zero taxes on digital riches collide with the cold, hard reality of Congress. 🌍💸 The crypto community is buzzing like a swarm of bees on Red Bull over reports of zero capital gains tax for U.S.-based crypto projects. This comes as Donald Trump, in his infinite wisdom, has decided to make crypto a national priority. Yes, the same man who once called Bitcoin a “scam” is now signing executive orders to build a national digital asset stockpile. 🏦 But hold your horses, folks—experts are here to rain on your tax-free parade.

Why Zero Crypto Taxes Are About as Likely as a Unicorn Sighting

Dennis Porter, CEO and co-founder of the Satoshi Action Fund, took to X (formerly Twitter) on January 26 to burst everyone’s bubble. He said that removing capital gains tax on crypto entirely depends on Congress. And let’s be honest, Congress couldn’t agree on the color of the sky if their lives depended on it. 🌈 Porter asserts that it’s highly unlikely Congress will include such a proposal in a tax bill anytime soon. Why? Because the government loves your money more than you do. 💰

The primary obstacle, according to Porter, is the massive loss in tax revenue. Imagine the IRS crying into their coffee mugs over lost billions. ☕ The Trump administration’s primary agenda is tax cuts, and any policy that threatens those cuts will be shoved into the “maybe later” pile. So, while the idea of zero taxes on crypto sounds like a dream come true, it’s about as realistic as a cat learning to code. 🐱💻

Eric Peterson, policy director at the Satoshi Action Fund, summed it up nicely:

Capital gain taxes on crypto is not going to 0% folks. Congress makes tax policy, not the president. Work towards attainable goals like the de minimis exemption.

Meanwhile, John Deaton, a crypto lawyer, raised eyebrows by questioning whether projects like Solana and Tezos—which have operations abroad—would even qualify for these mythical tax exemptions. 🤔

Baby Steps: The Crypto Industry’s Best Bet

Porter believes the crypto industry should focus on smaller, more achievable goals. He suggests pushing for a de minimis exemption of $200 for Bitcoin and other digital asset transactions. This would mean you wouldn’t have to report every time you bought a latte with Bitcoin. ☕ Because, let’s face it, no one wants to spend hours filling out tax forms for a $4 coffee.

“This proposal aligns with the existing $200 exemption for foreign currency transactions,” Porter said. “It’s a far more attainable and reasonable goal, with minimal impact on Trump’s ability to renew his tax cuts.”

Americans who live off of Bitcoin and digital assets should not have to report every small transaction, such as buying coffee, meals, or groceries, for tax purposes. This is an overly burdensome task and it’s time we pursue this simplification of the tax code.

Porter also revealed that there’s bipartisan support for this idea. Yes, you read that right—bipartisan support. In today’s political climate, that’s rarer than a polite Twitter argument. 🕊️

The Crypto Market’s Wild Ride

Despite the skepticism, the crypto market is riding high on the hope of zero taxes. 🚀 Eric Trump (yes, that Eric Trump) has been advocating for zero capital gains tax for U.S.-based crypto projects. ‘Made In USA’ cryptos like XRP, Solana (SOL), and Hedera (HBAR) could benefit from these tax cuts. According to CoinGecko, the U.S.-based crypto market cap is over $560 billion. That’s a lot of digital dough. 🍞

Meanwhile, Eric Trump hinted at a 30% capital gains tax on non-U.S. crypto projects. Experts believe this sharp divide is designed to attract global crypto investments to the United States. Because nothing says “welcome” like a hefty tax bill. 🏦

So, while the dream of zero crypto taxes may be as elusive as a unicorn, the crypto industry is still making strides. And who knows? Maybe one day, buying a pizza with Bitcoin won’t require a tax accountant on speed dial. 🍕📞

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2025-01-26 12:24