Eric Trump Confirms U.S.-Based Crypto Projects Will Benefit From Zero Capital Gains Tax

More bullish news this week for crypto and crypto taxes in the US! I have Scott Martin, my own personal crypto tax CPA, here with me again to explain one of

Some top U.S.-based crypto projects will soon benefit from zero capital gains tax, while non-U.S.-based projects will face a 30% capital gains tax, Eric Trump has confirmed.

This news comes as the Biden administration is set to announce new crypto rules next week.

According to Coingecko, XRP and HBAR are now classified as U.S.-based crypto projects. The crypto data aggregator has added a special category for tracking U.S.-based crypto projects, which is determined by the project's headquarters or primary operations being located in the United States.

Eric Trump, son of former U.S. President Donald Trump, has shared an image of a slide presentation, titled "Biden Admin to Announce New Crypto Rules," on his Telegram channel.

One slide reads, "Top U.S.-based crypto projects will benefit from 0% capital gains tax, while non-U.S.-based projects will face 30% capital gains tax."

The slide also notes that XRP and Hedera (HBAR) are now classified as U.S.-based crypto projects by Coingecko. XRP is the native token of Ripple, a payments company that is currently engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC) over the alleged status of XRP as an unregistered security.

Meanwhile, HBAR is the native token of Hedera Hashgraph, a distributed ledger technology (DLT) platform that is governed by a council of 23 organizations, including Google, IBM, and Boeing.

In December, the SEC proposed a rule amendment that would expand the definition of a "broker" for purposes of Section 6045 of the Internal Revenue Code. The amendment would require certain DeFi brokers to report gross proceeds and provide user data, including names and addresses, to the IRS.

The rule amendment is intended to close a tax reporting gap that has emerged with the rise of DeFi protocols, which typically do not have centralized entities that can collect and report user data.

However, critics of the rule amendment, including Sen. Cruz, argue that it stifles innovation, compromises privacy, and complicates tax reporting for the decentralized nature of the crypto industry.

Cruz is a crypto advocate and a proponent of light-touch crypto regulation. He is also known for his opposition to central bank digital currencies (CBDCs), championing decentralized alternatives like Bitcoin instead.

The rule amendment is set to take effect on Jan. 1, 2024, but the Congressional Review Act gives Congress the authority to overturn regulations within 60 days of their announcement.

With the current Republican-dominated Congress, Cruz's resolution is likely to gain traction, further solidifying his position as a pro-crypto lawmaker.