Erik Trump’s suggestion is tax exempt: What does that mean to the global encryption market

In a pioneering move that captured a great interest within the cryptocurrency community, Eric Trump, Executive Vice President of Trump and US President Donald Trump, announced a proposal that can significantly benefit the encrypted currency projects in the United States. His proposal indicates that cryptocurrencies operating in the United States may be eligible for a 0 % tax rate. This advertisement is part of its broader vision to unify the United States as a global pioneer in Blockchain technology and innovation in the encrypted currency.

A competitive advantage in the global market

The proposed tax rate will not only apply to Eric Trump to startups, but also to the US -focused companies that focus on Blockchain technology, encryption mining, decentralized financing (Defi), and other relevant services. By providing such an incentive, the United States can attract more encryption institutions and increase their position as a pioneer in the development of digital assets.

Other countries, such as Switzerland, Singapore and El Salvador, have implemented a similar tax -friendly policies to draw cryptocurrencies, and create an environment in which these projects can be thrived.

Impact on non -based projects on the United States

The US -based projects, such as Bitcoin, Gendand, Circle (USDC), Coinbase, Gemini, Blockfi, ChainLink, Cardano, Hedra Hashgraph, and Ripple Stand will greatly benefit from this exemption. Tax. However, concerns appear about the influence of non -based encryption projects on the United States. Reports indicate that foreign encryption companies that want to work or invest in the American market may face a 30 % high -slope tax. This tax gap can create an unequal stadium, which puts international projects in a non -favorable position compared to their counterparts in the United States.

Challenges and criticism of the proposal

Despite the possible benefits, the proposal is not without its challenges and criticism. One of the main concerns is the possible loss of tax revenue for the US government if the capital gains taxes are canceled for the encryption sector, which has become a very profitable industry. Critics argue that this may lead to a significant deficiency in the budget, raising questions about how the government compensates for lost revenues. Projects. Such a tax incentive may create an environment in which the United States that takes the United States is not thrived other than stifling international innovation and creating an unbalanced ecosystem. The encryption is unlikely due to the tax revenue fears and the priority of the renewal of tax cuts in the Trump era. The most achieved goal is to secure the exemption of $ 200 Dubai for small bitcoin and digital asset transactions, similar to foreign currency exemptions. This would simplify reports of daily transactions such as grocery. There is support from the two parties, and the proposal must be a rate of inflation for survival related to innovation and fairness.

Political reality: The removal of capital gains will completely require encryption from Congress and is very unlikely in the short term.

The main obstacle is the big loss of tax revenues, which makes it difficult to include such a proposal in the upcoming tax bill.

right…

– Dennis Porter (Dennis_porter_)) January 26, 2025

Trump’s proposal to block CBDCS

In addition to the tax exemption, President Donald Trump has signed an executive order that established a working group charged with proposing new regulations for the encrypted currency sector and exploring the possibility of stock of national cryptocurrency.

The executive also seeks to protect the banking services of the encryption companies, address the concerns that the organizers have pressed banks to cut ties with the industry. It is worth noting that the demand prohibits the creation of digital currencies for the Central Bank (CBDCS) in the United States, which can compete with current encrypted currencies such as Bitcoin.

Comparing the position of the encryption of the United States and India

In contrast to the position of the US -supporting United States, India has pursued a more restricted approach to regulating cryptocurrency. In 2021, the Indian government proposed a draft law that could prohibit cryptocurrencies and submit a central bank of the Central Bank (CBDC), raising fears within the encryption community. While the proposed ban was not imposed, the Central Bank of India, the Indian Reserve Bank (RBI), imposed strict banking restrictions on encryption exchange, which limits access to the encryption services investor.

Moreover, the Indian tax system on cryptocurrencies is relatively harsh. In 2022, the Indian government provided a 30 % tax on profits from encrypted currency transactions, along with a 1 % tax deducted in the source (TDS) on all transactions on a specific threshold.

These high taxes caused their fear among investors, with fear of fear that the encryption market in India can suffocate, prompting innovation and investment towards more coding judicial states such as the United States and Singapore.

Unlike the American proposal, India’s approach can be considered inhibitors for both investors and developers. The lack of clear regulations, along with high tax burdens, makes India less attractive to cryptocurrency projects compared to countries such as the United States, which provide more favorable tax rates and clearer regulatory frameworks.