Recent developments suggest that U.S.-based crypto projects like XRP could see significant tax benefits, while international counterparts might face higher taxation.
Specifically, Eric Trump has reportedly confirmed upcoming tax policies exempting U.S.-based cryptocurrencies such as XRP and HBAR from capital gains tax. Meanwhile, non-U.S. projects could be subjected to a tax rate of approximately 30%.
This shift, if implemented, could dramatically alter the competitive landscape for crypto ventures operating in the United States.
According to The Street, Trump's second son Eric Trump has confirmed that US-based crypto projects such as XRP and HBAR will soon benefit from zero capital gains tax instead of 30% capital gains tax. In addition, Senator Ted Cruz plans to overturn a controversial IRS regulation…
— Wu Blockchain (@WuBlockchain) January 26, 2025
Notably, this development comes amid ongoing discussions about the Trump administration favoring American projects over international ones.
Specifically, there have been ongoing suggestions that the proposed national crypto asset reserve of the U.S. could include American crypto assets like XRP and Cardano alongside Bitcoin.
Incoming Congressional Efforts on Crypto Tax
In addition to ghd potential tax exemptions, legislative efforts are underway to challenge existing crypto regulations. Senator Ted Cruz has announced his intent to leverage the Congressional Review Act to overturn a newly established IRS rule.
This rule mandates that DeFi brokers report user information, including names and addresses, and file Form 1099s. Critics argue that the regulation imposes an excessive compliance burden, particularly on decentralized platforms that lack centralized control.
The IRS has broadened its definition of “brokers” to include non-custodial entities with access to user data, a move that has raised concerns within the industry.
Supporters of Cruz’s resolution claim that such measures could stifle innovation and infringe on financial privacy. Given the current Republican-controlled Congress, the resolution is expected to gain traction in upcoming sessions.
Major U.S. Banks Eye Crypto Expansion
Alongside regulatory debates, major U.S. banks have expressed renewed interest in cryptocurrency as a financial asset.
Morgan Stanley, Bank of America, and Goldman Sachs have indicated plans to expand their crypto-related operations. Morgan Stanley’s CEO, Ted Pick, stated at the World Economic Forum that the bank intends to work closely with federal regulators to determine how it can safely offer crypto services.
Goldman Sachs has also signaled interest in direct crypto ownership. CEO David Solomon has noted that current regulations prevent banks from holding “physical” Bitcoin.
However, he suggested that the institution would explore potential changes if regulatory conditions allow. Bank of America’s CEO, Brian Moynihan, echoed similar sentiments, emphasizing that clear regulations could pave the way for banks to integrate crypto as a legitimate payment method.
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