by Jude Ayua  

Eric Trump, US President Donald Trump’s son and executive vice president of the Trump Organization, has reportedly confirmed the President’s proposed capital gains tax (CGT) exemption for US-based cryptocurrency projects including Ripple (XRP), Cardano (ADA), Algorand (ALGO), and Hedera (HBAR).

President Trump had earlier disclosed the plans in October 2024, which Eric Trump repeated in December while speaking at the “Bitcoin MENA 2024” in Abu Dhabi. “They have them paying tax on crypto, and I don’t think that’s right,” President Trump said in an interview. “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,” he added.

Regarding US-based crypto projects, the President remarked there should be no tax on them, but only on tokens based outside the US. “We want tokens made here at home, we don’t want the Chinese tokens,” he emphasized.

Read also: Trump’s Executive Order on Digital Assets: Policy Implications

Benefits and impact for US crypto market

The proposed CGT exemption for US-based crypto companies will benefit the businesses by increasing their revenue and capital base. The policy could incentivize crypto asset companies to register and operate from within the US. This move highlights President Trump’s promise to make the US the capital of the world. The President remarked during his inauguration address that he would make foreign players invest in the US and pay taxes there instead of the US taxing its citizens.  

There have been opposing views on the President’s proposed exemption of crypto assets from CGT. Crypto advocates propose that cryptocurrencies should be in the same category as traditional currencies, which are not subject to capital gains tax. On the other hand, opponents argue that cryptocurrencies are highly volatile and lack the stability and government backing of traditional money. Exempting them from taxation would create an unfair advantage, favoring wealthy investors and increasing wealth inequality. In addition, the government would lose revenue from untaxed crypto gains, adding the tax burden to lower income earners.

Notwithstanding, Trump’s proposal is to incentivize US-based crypto projects, increase adoption, and realize his promise of making the US a safe haven for crypto investment.

Read also: US banking sector ready to adopt crypto if regulators permit it—Bank of America CEO

Eric Trump’s stance on crypto regulation

Eric Trump’s crypto stance aligns with his father’s. During Eric’s keynote address at the Bitcoin MENA 2024, he said he “loves” bitcoin, and emphasized how he has assisted President Trump in “making bitcoin great again.” Eric also told Benzinga in December 2024 that he would work together with his father to make the US a “global hub for crypto.”

Eric has criticized the former US Securities and Exchange Commission Chair Gary Gensler for waging what Eric described as “holy war” against the crypto industry. “The crypto community in America was under total attack by Gary Gensler and so many other people. Biden was nowhere to be found. Kamala [Harris] was nowhere to be found. They didn’t understand what crypto was,” Eric said. He also expressed optimism at President Trump’s second term: “And then all of a sudden my father comes in.”

Read also: Trump establishes President‘s Working Group on Digital Asset Markets  

 

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Jude Ayua is a policy analyst at CAB. A lawyer, Jude is an associate at Infusion Lawyers where he is a member of the Blockchain & Virtual Assets Group. He is also a member of the Policy & Regulations Committee of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). Jude reports and writes on crypto policy and regulations. jude@infusionlawyers.com